Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Mar. 31, 2015 | Aug. 29, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 28-Feb-15 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | CARMAX INC | ||
Entity Central Index Key | 1170010 | ||
Entity Public Float | $11,355,302,700 | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | -26 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 207,930,356 |
Consolidated_Statements_Of_Ear
Consolidated Statements Of Earnings (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
SALES AND OPERATING REVENUES: | ||||
NET SALES AND OPERATING REVENUES | $14,268,716 | $12,574,299 | [1] | $10,962,818 |
Cost of sales | 12,381,189 | 10,925,598 | 9,498,456 | |
GROSS PROFIT | 1,887,527 | 1,648,701 | 1,464,362 | |
CARMAX AUTO FINANCE INCOME | 367,294 | 336,167 | 299,267 | |
Selling, general and administrative expenses | 1,257,725 | 1,155,215 | 1,031,034 | |
Interest expense | 24,473 | 30,834 | 32,357 | |
Other (expense) income | 3,292 | 1,497 | -1,113 | |
Earnings before income taxes | 969,331 | 797,322 | 701,351 | |
Income tax provision | 371,973 | 304,736 | 267,067 | |
NET EARNINGS | 597,358 | 492,586 | 434,284 | |
WEIGHTED AVERAGE COMMON SHARES: | ||||
Basic | 215,617 | 223,589 | 228,095 | |
Diluted | 218,691 | 227,584 | 231,823 | |
NET EARNINGS PER SHARE: | ||||
Basic | $2.77 | $2.20 | $1.90 | |
Diluted | $2.73 | $2.16 | $1.87 | |
Used Vehicle Sales [Member] | ||||
SALES AND OPERATING REVENUES: | ||||
Used vehicle sales | 11,674,520 | 10,306,256 | 8,746,965 | |
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 81.80% | 82.00% | 79.80% | |
New Vehicle Sales [Member] | ||||
SALES AND OPERATING REVENUES: | ||||
New vehicle sales | 240,004 | 212,036 | 207,726 | |
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 1.70% | 1.70% | 1.90% | |
Wholesale Vehicle Sales [Member] | ||||
SALES AND OPERATING REVENUES: | ||||
Wholesale vehicle sales | 2,049,133 | 1,823,425 | 1,759,555 | |
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 14.40% | 14.50% | 16.10% | |
Other Sales And Revenues [Member] | ||||
SALES AND OPERATING REVENUES: | ||||
Other sales and revenues | $305,059 | $232,582 | $248,572 | |
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 2.10% | 1.80% | 2.30% | |
Net Sales And Operating Revenues [Member] | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 100.00% | 100.00% | 100.00% | |
Cost Of Sales [Member] | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 86.80% | 86.90% | 86.60% | |
Gross Profit [Member] | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 13.20% | 13.10% | 13.40% | |
CAF Income [Member] | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 2.60% | 2.70% | 2.70% | |
Selling, General And Administrative Expenses [Member] | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 8.80% | 9.20% | 9.40% | |
Interest Expense [Member] | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 0.20% | 0.20% | 0.30% | |
Other (Expense) Income [Member] | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 0.00% | 0.00% | 0.00% | |
Earnings Before Income Taxes [Member] | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 6.80% | 6.30% | 6.40% | |
Income Tax Provision [Member] | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 2.60% | 2.40% | 2.40% | |
Net Earnings [Member] | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 4.20% | 3.90% | 4.00% | |
[1] | As disclosed in Note 8, during the fourth quarter of fiscal 2014, we corrected our accounting related to cancellation reserves for our ESP and GAP products. The correction of the out of period error consisted of $0.02 per share pertaining to earlier quarters in fiscal 2014 and $0.05 per share pertaining to fiscal 2013 and fiscal 2012. |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Consolidated Statements Of Comprehensive Income [Abstract] | |||
Net earnings | $597,358 | $492,586 | $434,284 |
Retirement plans: | |||
Net change in retirement benefit plan unrecognized actuarial losses | -20,505 | 10,764 | -9,705 |
Cash flow hedges: | |||
Net change in cash flow hedge unrecognized losses | 1,385 | 2,773 | 12,356 |
Other comprehensive income (loss), net of taxes | -19,120 | 13,537 | 2,651 |
TOTAL COMPREHENSIVE INCOME | $578,238 | $506,123 | $436,935 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $27,606 | $627,901 |
Restricted cash from collections on auto loan receivables | 294,122 | 259,299 |
Accounts receivable, net | 137,690 | 79,923 |
Inventory | 2,086,874 | 1,641,424 |
Deferred income taxes | 8,100 | 7,866 |
Other current assets | 44,646 | 26,811 |
TOTAL CURRENT ASSETS | 2,599,038 | 2,643,224 |
Auto loan receivable, net | 8,435,504 | 7,147,848 |
Property and equipment, net | 1,862,538 | 1,652,977 |
Deferred income taxes | 167,638 | 152,199 |
Other assets | 133,483 | 110,909 |
TOTAL ASSETS | 13,198,201 | 11,707,157 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Accounts payable | 454,810 | 427,492 |
Accrued expenses and other current liabilities | 250,307 | 202,588 |
Accrued income taxes | 1,554 | 2,438 |
Short-term debt | 785 | 582 |
Current portion of long-term debt | 10,000 | 0 |
Current portion of finance and capital lease obligations | 21,554 | 18,459 |
Current portion of non-recourse notes payable | 258,163 | 223,938 |
TOTAL CURRENT LIABILITIES | 997,173 | 875,497 |
Long-term debt, excluding current portion | 300,000 | 0 |
Finance and capital lease obligations, excluding current portion | 306,284 | 315,925 |
Non-recourse notes payable, excluding current portion | 8,212,466 | 7,024,506 |
Other liabilities | 225,493 | 174,232 |
TOTAL LIABILITIES | 10,041,416 | 8,390,160 |
Commitments and contingent liabilities | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, $0.50 par value; 350,000,000 shares authorized; 208,869,688 and 221,685,984 shares issued and outstanding as of February 28, 2015 and February 28, 2014, respectively | 104,435 | 110,843 |
Capital in excess of par value | 1,123,520 | 1,038,209 |
Accumulated other comprehensive loss | -65,391 | -46,271 |
Retained earnings | 1,994,221 | 2,214,216 |
TOTAL SHAREHOLDERS' EQUITY | 3,156,785 | 3,316,997 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $13,198,201 | $11,707,157 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
Consolidated Balance Sheets [Abstract] | ||
Common stock, par value | $0.50 | $0.50 |
Common stock, shares authorized | 350,000,000 | |
Common stock, shares issued | 208,869,688 | 221,685,984 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
OPERATING ACTIVITIES: | |||
Net earnings | $597,358 | $492,586 | $434,284 |
Adjustments to reconcile net earnings to net cash used in operating activities: | |||
Depreciation and amortization | 115,173 | 101,911 | 95,283 |
Share-based compensation expense | 81,880 | 66,480 | 62,112 |
Provision for loan losses | 82,343 | 72,212 | 56,168 |
Provision for cancellation reserves | 70,987 | 76,746 | 31,667 |
Deferred income tax (benefit) provision | -4,299 | -17,185 | 3,858 |
Loss (gain) on disposition of assets and other | 3,852 | 2,707 | 1,945 |
Net decrease (increase) in: | |||
Accounts receivable, net | -57,767 | 12,038 | -5,527 |
Inventory | -445,450 | -123,611 | -425,221 |
Other current assets | -16,947 | -3,019 | -3,252 |
Auto loan receivables, net | -1,369,999 | -1,324,142 | -992,239 |
Other assets | 825 | -6,754 | -1,722 |
Net increase (decrease) in: | |||
Accounts payable, accrued expenses and other current liabilities and accrued income taxes | 51,960 | 117,405 | -575 |
Other liabilities | -78,046 | -80,537 | -35,222 |
NET CASH USED IN OPERATING ACTIVITIES | -968,130 | -613,163 | -778,441 |
INVESTING ACTIVITIES: | |||
Capital expenditures | -309,817 | -310,317 | -235,707 |
Proceeds from sales of assets | 5,869 | 5,095 | 0 |
Increase in restricted cash from collections on auto loan receivables | -34,823 | -35,012 | -19,973 |
Increase in restricted cash in reserve accounts | -16,556 | -10,403 | -13,385 |
Release of restricted cash from reserve accounts | 6,346 | 19,202 | 17,368 |
(Purchases) sales of money market securities, net | -8,604 | -3,661 | -2,139 |
Purchases of Trading Securities | -3,814 | -2,051 | -31,756 |
Proceeds from Sale of Trading Securities | 655 | 466 | 30,318 |
NET CASH USED IN INVESTING ACTIVITIES | -360,744 | -336,681 | -255,274 |
FINANCING ACTIVITIES: | |||
Increase (decrease) in short-term debt, net | 203 | 227 | -588 |
Proceeds from Revolving Line of Credit and Long-Term Debt | 985,000 | 0 | 0 |
Payments on Revolving Line of Credit and Long-Term Debt | -675,000 | 0 | 0 |
Cash paid for issuance of long-term debt | -1,190 | 0 | 0 |
Payments on finance and capital lease obligations | -18,243 | -19,596 | -14,083 |
Issuance of non-recourse notes payable | 7,783,000 | 6,907,000 | 5,851,000 |
Payments on non-recourse notes payable | -6,560,815 | -5,513,646 | -4,679,999 |
Repurchase and retirement of common stock | -916,981 | -307,248 | -203,405 |
Equity issuances, net | 82,463 | 39,000 | 63,396 |
Excess tax benefits from share-based payment arrangements | 50,142 | 22,644 | 24,100 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 728,579 | 1,128,381 | 1,040,421 |
(Decrease) Increase in cash and cash equivalents | -600,295 | 178,537 | 6,706 |
Cash and cash equivalents at beginning of year | 627,901 | 449,364 | 442,658 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 27,606 | 627,901 | 449,364 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||
Cash paid for interest | 33,043 | 30,991 | 32,601 |
Cash paid for income taxes | 346,865 | 287,000 | 244,337 |
Non-cash investing and financing activities: | |||
Increase (decrease) in accrued capital expenditures | 3,698 | 11,468 | -1,211 |
Increase in finance and capital lease obligations | $11,697 | $0 | $0 |
Consolidated_Statements_Of_Sha
Consolidated Statements Of Shareholdersb Equity (USD $) | Common Stock [Member] | Capital In Excess Of Par Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
In Thousands | |||||
BALANCE at Feb. 29, 2012 | $113,559 | $877,493 | $1,744,519 | ($62,459) | $2,673,112 |
BALANCE, SHARES at Feb. 29, 2012 | 227,119 | ||||
Net earnings | 0 | 0 | 434,284 | 0 | 434,284 |
Other comprehensive income (loss) | 0 | 0 | 0 | 2,651 | 2,651 |
Share-based compensation expense | 0 | 37,294 | 0 | 0 | 37,294 |
Repurchase of common stock | -2,881 | -24,066 | -185,031 | 0 | -211,978 |
Repurchase of common stock, shares | -5,762 | ||||
Exercise of common stock options | 2,008 | 69,737 | 0 | 0 | 71,745 |
Exercise of common stock options, shares | 4,016 | ||||
Shares issued under stock incentive plans | 395 | 155 | 0 | 0 | 550 |
Shares issued under stock incentive plans, shares | 791 | ||||
Shares cancelled under stock incentive plans | -128 | -8,221 | 0 | 0 | -8,349 |
Shares cancelled under stock incentive plans, shares | -258 | ||||
Tax effect from the exercise of common stock options | 0 | 19,858 | 0 | 0 | 19,858 |
BALANCE at Feb. 28, 2013 | 112,953 | 972,250 | 1,993,772 | -59,808 | 3,019,167 |
BALANCE, SHARES at Feb. 28, 2013 | 225,906 | ||||
Net earnings | 0 | 0 | 492,586 | 0 | 492,586 |
Other comprehensive income (loss) | 0 | 0 | 0 | 13,537 | 13,537 |
Share-based compensation expense | 0 | 36,429 | 0 | 0 | 36,429 |
Repurchase of common stock | -3,430 | -30,566 | -272,142 | 0 | -306,138 |
Repurchase of common stock, shares | -6,860 | ||||
Exercise of common stock options | 1,168 | 43,977 | 0 | 0 | 45,145 |
Exercise of common stock options, shares | 2,337 | ||||
Shares issued under stock incentive plans | 227 | 273 | 0 | 0 | 500 |
Shares issued under stock incentive plans, shares | 453 | ||||
Shares cancelled under stock incentive plans | -75 | -6,071 | 0 | 0 | -6,146 |
Shares cancelled under stock incentive plans, shares | -150 | ||||
Tax effect from the exercise of common stock options | 0 | 21,917 | 0 | 0 | 21,917 |
BALANCE at Feb. 28, 2014 | 110,843 | 1,038,209 | 2,214,216 | -46,271 | 3,316,997 |
BALANCE, SHARES at Feb. 28, 2014 | 221,686 | ||||
Net earnings | 0 | 0 | 597,358 | 0 | 597,358 |
Other comprehensive income (loss) | 0 | 0 | 0 | -19,120 | -19,120 |
Share-based compensation expense | 0 | 43,341 | 0 | 0 | 43,341 |
Repurchase of common stock | -8,756 | -86,933 | -817,353 | 0 | -913,042 |
Repurchase of common stock, shares | -17,511 | ||||
Exercise of common stock options | 2,195 | 87,616 | 0 | 0 | 89,811 |
Exercise of common stock options, shares | 4,390 | ||||
Shares issued under stock incentive plans | 231 | -231 | 0 | 0 | 0 |
Shares issued under stock incentive plans, shares | 461 | ||||
Shares cancelled under stock incentive plans | -78 | -7,268 | 0 | 0 | -7,346 |
Shares cancelled under stock incentive plans, shares | -156 | ||||
Tax effect from the exercise of common stock options | 0 | 48,786 | 0 | 0 | 48,786 |
BALANCE at Feb. 28, 2015 | $104,435 | $1,123,520 | $1,994,221 | ($65,391) | $3,156,785 |
BALANCE, SHARES at Feb. 28, 2015 | 208,870 |
Business_And_Background
Business And Background | 12 Months Ended |
Feb. 28, 2015 | |
Business And Background [Abstract] | |
Background | 1.Business and Background |
CarMax, Inc. (“we,” “our,” “us,” “CarMax” and “the company”), including its wholly owned subsidiaries, is the largest retailer of used vehicles in the United States. 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 vehicle financing through CarMax stores. | |
We seek to deliver an unrivaled customer experience by offering a broad selection of high quality used vehicles and related products and services at low, no-haggle prices using a customer-friendly sales process in an attractive, modern sales facility. We provide customers with a full range of related products and services, including the appraisal and purchase of vehicles directly from consumers; the financing of vehicle purchases through CAF and third-party financing providers; the sale of extended protection plan (“EPP”) products, which include extended service plans (“ESP”) 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 wholesale auctions. At select locations we also sell new vehicles under franchise agreements. | |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 12 Months Ended | ||||
Feb. 28, 2015 | |||||
Summary Of Significant Accounting Policies [Abstract] | |||||
Summary Of Significant Accounting Policies | 2.Summary of Significant Accounting Policies | ||||
(A) Basis of Presentation and Use of Estimates | |||||
The consolidated financial statements include the accounts of CarMax and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“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. Certain prior year amounts have been reclassified to conform to the current year’s presentation. Amounts and percentages may not total due to rounding. | |||||
(B) Cash and Cash Equivalents | |||||
Cash equivalents of approximately $48,000 as of February 28, 2015, and $607.0 million as of February 28, 2014, consisted of highly liquid investments with original maturities of three months or less. | |||||
(C) Restricted Cash from Collections on Auto Loan Receivables | |||||
Cash equivalents totaling $294.1 million as of February 28, 2015, and $259.3 million as of February 28, 2014, consisted of collections of principal, interest and fee payments on securitized auto loan receivables that are restricted for payment to the securitization investors pursuant to the applicable securitization agreements. | |||||
(D) Marketable Securities | |||||
The Company classifies its marketable securities as trading. These securities consisted primarily of mutual funds reported at fair value with unrealized gains and losses reflected as a component of other expense. Marketable securities as of February 28, 2015 and 2014 pertain to the Company's restricted investments held in a rabbi trust. Proceeds from the sales of marketable securities were $0.7 million and $0.5 million in fiscal 2015 and 2014, respectively. Realized and unrealized gains of $0.2 million and $0 were recognized during fiscal 2015 and fiscal 2014, respectively. | |||||
(E) Accounts Receivable, Net | |||||
Accounts receivable, net of an allowance for doubtful accounts, includes certain amounts due from third-party finance providers and customers and other miscellaneous receivables. The allowance for doubtful accounts is estimated based on historical experience and trends. | |||||
(F) Securitizations | |||||
We maintain a revolving securitization program composed of two warehouse facilities (“warehouse facilities”) that we use to fund auto loan receivables originated by CAF until we elect to fund them through a term securitization or alternative funding arrangement. We sell the auto loan receivables to one of two wholly owned, bankruptcy-remote, special purpose entities that transfer an undivided percentage ownership interest in the receivables, but not the receivables themselves, to entities formed by third-party investors. These entities issue asset-backed commercial paper or utilize other funding sources supported by the transferred receivables, and the proceeds are used to finance the securitized receivables. | |||||
We typically use term securitizations to provide long-term funding for most of the auto loan receivables initially securitized through the warehouse facilities. In these transactions, a pool of auto loan receivables is sold to a bankruptcy-remote, special purpose entity that, in turn, transfers the receivables to a special purpose securitization trust. The securitization trust issues asset-backed securities, secured or otherwise supported by the transferred receivables, and the proceeds from the sale of the asset-backed securities are used to finance the securitized receivables. | |||||
We are required to evaluate term securitization trusts for consolidation. In our capacity as servicer, we have the power to direct the activities of the trusts that most significantly impact the economic performance of the trusts. In addition, we have the obligation to absorb losses (subject to limitations) and the rights to receive any returns of the trusts, which could be significant. Accordingly, we are the primary beneficiary of the trusts and are required to consolidate them. | |||||
We recognize transfers of auto loan receivables into the warehouse facilities and term securitizations (“securitization vehicles”) as secured borrowings, which result in recording the auto loan receivables and the related non-recourse notes payable on our consolidated balance sheets. | |||||
The securitized receivables can only be used as collateral to settle obligations of the securitization vehicles. The securitization vehicles and investors have no recourse to our assets beyond the securitized receivables, the amounts on deposit in reserve accounts and the restricted cash from collections on auto loan receivables. We have not provided financial or other support to the securitization vehicles that was not previously contractually required, and there are no additional arrangements, guarantees or other commitments that could require us to provide financial support to the securitization vehicles. | |||||
See Notes 4 and 11 for additional information on auto loan receivables and non-recourse notes payable. | |||||
(G) Fair Value of Financial Instruments | |||||
Due to the short-term nature and/or variable rates associated with these financial instruments, the carrying value of our cash and cash equivalents, restricted cash, accounts receivable, money market securities, accounts payable, short-term debt and long-term debt approximates fair value. Our derivative instruments and mutual funds are recorded at fair value. Auto loan receivables are presented net of an allowance for estimated loan losses. See Note 6 for additional information on fair value measurements. | |||||
(H) Inventory | |||||
Inventory is primarily comprised of vehicles held for sale or currently undergoing reconditioning and is stated at the lower of cost or market. Vehicle inventory cost is determined by specific identification. Parts and labor used to recondition vehicles, as well as transportation and other incremental expenses associated with acquiring and reconditioning vehicles, are included in inventory. | |||||
(I) Auto Loan Receivables, Net | |||||
Auto loan receivables include amounts due from customers related to retail vehicle sales financed through CAF. The receivables are presented net of an allowance for estimated loan losses. The allowance for loan losses represents an estimate of the amount of net losses inherent in our portfolio of managed receivables as of the applicable reporting date and anticipated to occur during the following 12 months. The allowance is primarily based on the credit quality of the underlying receivables, historical loss trends and forecasted forward loss curves. We also take into account recent trends in delinquencies and losses, recovery rates and the economic environment. The provision for loan losses is the periodic expense of maintaining an adequate allowance. | |||||
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. See Note 4 for additional information on auto loan receivables. | |||||
Interest income and expenses related to auto loans are included in CAF income. Interest income on auto loan receivables is recognized when earned based on contractual loan terms. All loans continue to accrue interest until repayment or charge-off. Direct costs associated with loan originations are not considered material, and thus, are expensed as incurred. See Note 3 for additional information on CAF income. | |||||
(J) Property and Equipment | |||||
Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the shorter of the asset’s estimated useful life or the lease term, if applicable. Property held under capital lease is stated at the lesser of the present value of the future minimum lease payments at the inception of the lease or fair value. Amortization of capital lease assets is computed on a straight-line basis over the shorter of the initial lease term or the estimated useful life of the asset and is included in depreciation expense. Costs incurred during new store construction are capitalized as construction-in-progress and reclassified to the appropriate fixed asset categories when the store is completed. | |||||
Estimated Useful Lives | |||||
Life | |||||
Buildings | 25 years | ||||
Capital lease | 20 years | ||||
Leasehold improvements | 15 years | ||||
Furniture, fixtures and equipment | 3 – 15 years | ||||
We review long-lived assets for impairment when events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. We recognize impairment when the sum of undiscounted estimated future cash flows expected to result from the use of the asset is less than the carrying value of the asset. See Note 7 for additional information on property and equipment. | |||||
(K) Other Assets | |||||
Goodwill and Intangible Assets. Goodwill and other intangibles had a carrying value of $10.1 million as of February 28, 2015 and February 28, 2014. We review goodwill and intangible assets for impairment annually or when circumstances indicate the carrying amount may not be recoverable. No impairment of goodwill or intangible assets resulted from our annual impairment tests in fiscal 2015, 2014 or 2013. | |||||
Restricted Cash on Deposit in Reserve Accounts. The restricted cash on deposit in reserve accounts is for the benefit of holders of non-recourse notes payable, and these funds are not expected to be available to the company or its creditors. In the event that the cash generated by the securitized receivables in a given period was insufficient to pay the interest, principal and other required payments, the balances on deposit in the reserve accounts would be used to pay those amounts. Restricted cash on deposit in reserve accounts is invested in money market securities and was $42.7 million as of February 28, 2015, and $32.5 million as of February 28, 2014. | |||||
Restricted Investments. Restricted investments includes money market securities primarily held to satisfy certain insurance program requirements, as well as mutual funds held in a rabbi trust established to fund informally our executive deferred compensation plan. Restricted investments totaled $52.4 million as of February 28, 2015 and $40.2 million as of February 28, 2014. | |||||
(L) Finance Lease Obligations | |||||
We generally account for sale-leaseback transactions as financings. Accordingly, we record certain of the assets subject to these transactions on our consolidated balance sheets in property and equipment and the related sales proceeds as finance lease obligations. Depreciation is recognized on the assets over their estimated useful lives, generally 25 years. Payments on the leases are recognized as interest expense and a reduction of the obligations. In the event the leases are modified or extended beyond the original lease term, the related finance lease obligation is increased based on the present value of the revised future minimum lease payments on the date of the modification, with a corresponding increase to the net carrying amount of the assets subject to these transactions. See Notes 11 and 15 for additional information on finance lease obligations. | |||||
(M) Accrued Expenses | |||||
As of February 28, 2015 and February 28, 2014, accrued expenses and other current liabilities included accrued compensation and benefits of $148.4 million and $120.7 million, respectively; loss reserves for general liability and workers’ compensation insurance of $36.7 million and $29.7 million, respectively; and the current portion of cancellation reserves. See Note 8 for additional information on cancellation reserves. | |||||
(N) Defined Benefit Plan Obligations | |||||
The recognized funded status of defined benefit retirement plan obligations is included both in accrued expenses and other current liabilities and in other liabilities. The current portion represents benefits expected to be paid from our benefit restoration plan over the next 12 months. The defined benefit retirement plan obligations are determined by independent actuaries using a number of assumptions provided by CarMax. Key assumptions used in measuring the plan obligations include the discount rate, rate of return on plan assets and mortality rate. See Note 10 for additional information on our benefit plans. | |||||
(O) Insurance Liabilities | |||||
Insurance liabilities are included in accrued expenses and other current liabilities. We use a combination of insurance and self-insurance for a number of risks including workers’ compensation, general liability and employee-related health care costs, a portion of which is paid by associates. Estimated insurance liabilities are determined by considering historical claims experience, demographic factors and other actuarial assumptions. | |||||
(P) Revenue Recognition | |||||
We recognize revenue when the earnings process is complete, generally either at the time of sale to a customer or upon delivery to a customer. As part of our customer service strategy, we guarantee the retail vehicles we sell with a 5‑day, money-back guarantee. We record a reserve for estimated returns based on historical experience and trends. | |||||
We also sell ESPs and GAP on behalf of unrelated third parties, who are the primary obligors, to customers who purchase a 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 commission revenue at the time of sale, net of a reserve for estimated contract cancellations. Periodically, we may receive additional commissions based upon the level of underwriting profits of the third parties who administer the products. These additional commissions are recognized as revenue when received. 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 commissions 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 other current liabilities with the remaining amount recognized in other liabilities. See Note 8 for additional information on cancellation reserves. | |||||
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. | |||||
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. | |||||
(Q) Cost of Sales | |||||
Cost of sales includes the cost to acquire vehicles and the reconditioning and transportation costs associated with preparing the vehicles for resale. It also includes payroll, fringe benefits and parts and repair costs associated with reconditioning and vehicle repair services. The gross profit earned by our service department for used vehicle reconditioning service is a reduction of cost of sales. We maintain a reserve to eliminate the internal profit on vehicles that have not been sold. | |||||
(R) Selling, General and Administrative Expenses | |||||
Selling, general and administrative (“SG&A”) expenses primarily include compensation and benefits, other than payroll related to reconditioning and vehicle repair services; depreciation, rent and other occupancy costs; advertising; and IT expenses, insurance, bad debt, travel, preopening and relocation costs, charitable contributions and other administrative expenses. | |||||
(S) Advertising Expenses | |||||
Advertising costs are expensed as incurred and substantially all are included in SG&A expenses. Total advertising expenses were $124.3 million in fiscal 2015, $114.6 million in fiscal 2014 and $108.2 million in fiscal 2013. | |||||
(T) Store Opening Expenses | |||||
Costs related to store openings, including preopening costs, are expensed as incurred and are included in SG&A expenses. | |||||
(U) Share-Based Compensation | |||||
Share-based compensation represents the cost related to share-based awards granted to employees and non-employee directors. We measure share-based compensation cost at the grant date, based on the estimated fair value of the award, and we recognize the cost on a straight-line basis (net of estimated forfeitures) over the grantee’s requisite service period, which is generally the vesting period of the award. We estimate the fair value of stock options using a binomial valuation model. Key assumptions used in estimating the fair value of options are dividend yield, expected volatility, risk-free interest rate and expected term. The fair value of restricted stock is based on the volume-weighted average market value on the date of the grant. The fair value of stock-settled restricted stock units is determined using a Monte-Carlo simulation based on the expected market price of our common stock on the vesting date and the expected number of converted common shares. Cash-settled restricted stock units are liability awards with fair value measurement based on the market price of CarMax common stock as of the end of each reporting period. Share-based compensation expense is recorded in either cost of sales, CAF income or SG&A expenses based on the recipients’ respective function. | |||||
We record deferred tax assets for awards that result in deductions on our income tax returns, based on the amount of compensation expense recognized and the statutory tax rate in the jurisdiction in which we will receive a deduction. Differences between the deferred tax assets recognized for financial reporting purposes and the actual tax deduction reported on the income tax return are recorded in capital in excess of par value (if the tax deduction exceeds the deferred tax asset) or in the consolidated statements of earnings (if the deferred tax asset exceeds the tax deduction and no capital in excess of par value exists from previous awards). See Note 12 for additional information on stock-based compensation. | |||||
(V) Derivative Instruments and Hedging Activities | |||||
We enter into derivative instruments to manage exposures that arise from business activities that result in the future known receipt or payment of uncertain cash amounts, the values of which are impacted by interest rates. We recognize the derivatives at fair value as either current assets or current liabilities on the consolidated balance sheets, and where applicable, such contracts covered by master netting agreements are reported net. Gross positive fair values are netted with gross negative fair values by counterparty. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. We may enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting may not apply or we do not elect to apply hedge accounting. See Note 5 for additional information on derivative instruments and hedging activities. | |||||
(W) Income Taxes | |||||
We file a consolidated federal income tax return for a majority of our subsidiaries. Certain subsidiaries are required to file separate partnership or corporate federal income tax returns. Deferred income taxes reflect the impact of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for income tax purposes, measured by applying currently enacted tax laws. A deferred tax asset is recognized if it is more likely than not that a benefit will be realized. Changes in tax laws and tax rates are reflected in the income tax provision in the period in which the changes are enacted. | |||||
We recognize tax liabilities when, despite our belief that our tax return positions are supportable, we believe that certain positions may not be fully sustained upon review by tax authorities. Benefits from tax positions are measured at the highest tax benefit that is greater than 50% likely of being realized upon settlement. The current portion of these tax liabilities is included in accrued income taxes and any noncurrent portion is included in other liabilities. To the extent that the final tax outcome of these matters is different from the amounts recorded, the differences impact income tax expense in the period in which the determination is made. Interest and penalties related to income tax matters are included in SG&A expenses. See Note 9 for additional information on income taxes. | |||||
(X) 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 the 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. See Note 13 for additional information on net earnings per share. | |||||
(Y) Recent Accounting Pronouncements | |||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting pronouncement related to liabilities (FASB ASU 2013-04), which amends the guidance in former FASB ASC Topic 405. The amendments provide guidance on the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements, including debt arrangements, other contractual obligations, and settled litigation and judicial rulings. We adopted this pronouncement for our fiscal year beginning March 1, 2014, and there was no effect on our consolidated financial statements. | |||||
In July 2013, the FASB issued an accounting pronouncement (FASB ASU 2013-11) related to income taxes (FASB ASC Topic 740), which provides guidance regarding the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar loss or a tax credit carryforward exists. Under certain circumstances, unrecognized tax benefits should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. We adopted this pronouncement for our fiscal year beginning March 1, 2014, and there was no effect on our consolidated financial statements. | |||||
In April 2014, the FASB issued an accounting pronouncement (FASB ASU 2014-8) related to discontinued operations (FASB ASC Topic 205). The standard raises the threshold for disposals to qualify as a discontinued operation by focusing on strategic shifts that have or will have a major effect on an entity’s operations and financial results. The standard also requires additional disclosures for discontinued operations and new disclosures for individually material disposal transactions that do not meet the definition of discontinued operations. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. We will adopt this pronouncement for our fiscal year beginning March 1, 2015. We do not expect this pronouncement to have a material effect on our consolidated financial statements. | |||||
In May 2014, the FASB issued an accounting pronouncement related to revenue recognition (FASB ASC Topic 606), which amends the guidance in former ASC Topic 605, Revenue Recognition, and provides a single, comprehensive revenue recognition model for all contracts with customers. This standard contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. The entity will recognize revenue to reflect the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is not permitted. We will adopt the provisions of ASC Topic 606 for our fiscal year beginning March 1, 2017, and are currently evaluating the effect on our consolidated financial statements. | |||||
In January 2015, the FASB issued an accounting pronouncement (FASB ASU 2015-1) related to the disclosure requirements for extraordinary items (FASB ASC Subtopic 225-20). The standard eliminates the concept of extraordinary items on the income statement. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. We will adopt this pronouncement for our fiscal year beginning March 1, 2016. We do not expect this pronouncement to have a material effect on our consolidated financial statements. | |||||
In February 2015, the FASB issued an accounting pronouncement (FASB ASU 2015-2) related to the elimination of guidance which has allowed entities with interests in certain investment funds to follow earlier consolidation guidance and makes changes to both the variable interest model and the voting model (FASB ASC 810). This standard will require all entities to re-evaluate consolidation conclusions regarding variable interest entities. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. We will adopt this pronouncement for our fiscal year beginning March 1, 2016, and are currently evaluating the impact on our consolidated financial statements. | |||||
In April 2015, the FASB issued an accounting pronouncement (FASB ASU 2015-3) related to the presentation of debt issuance costs (FASB ASC Subtopic 835-30). This standard will require debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the debt liability rather than as an asset. These costs will continue to be amortized to interest expense using the effective interest method. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, and retrospective adoption is required. We will adopt this pronouncement for our fiscal year beginning March 1, 2016. We do not expect this pronouncement to have a material effect on our consolidated financial statements. | |||||
In April 2015, the FASB issued an accounting pronouncement (FASB ASU 2015-5) which provides guidance regarding whether a cloud computing arrangement includes a software license (FASB ASC Subtopic 350-40). If a cloud computing arrangement includes a software license, then the entity should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the entity should account for the arrangement as a service contract. The guidance will not change GAAP for an entity’s accounting for service contracts. This pronouncement is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2015. We will adopt this pronouncement for our fiscal year beginning March 1, 2016. We do not expect this pronouncement to have a material effect on our consolidated financial statements. | |||||
CarMax_Auto_Finance_Income
CarMax Auto Finance Income | 12 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
CarMax Auto Finance Income [Abstract] | |||||||||||||||||
CarMax Auto Finance Income | 3.CarMax Auto Finance | ||||||||||||||||
CAF provides financing to qualified retail customers purchasing vehicles at CarMax stores. 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 loan receivables 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 to fund loans originated by CAF, as discussed in Note 2(F). CAF income primarily reflects the interest and fee income generated by the auto loan receivables 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 such as human resources, administrative services, marketing, information systems, accounting, legal, treasury and executive payroll. In addition, except for auto loan receivables, which are disclosed in Note 4, 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 | |||||||||||||||||
Years Ended February 28 | |||||||||||||||||
(In millions) | 2015 | -1% | 2014 | -1% | 2013 | -1% | |||||||||||
Interest margin: | |||||||||||||||||
Interest and fee income | $ | 604.9 | 7.7 | $ | 548.0 | 8.3 | $ | 495.3 | 9.2 | ||||||||
Interest expense | -96.6 | -1.2 | -90 | -1.4 | -95.1 | -1.8 | |||||||||||
Total interest margin | 508.3 | 6.5 | 458.0 | 6.9 | 400.2 | 7.4 | |||||||||||
Provision for loan losses | -82.3 | -1 | -72.2 | -1.1 | -56.2 | -1 | |||||||||||
Total interest margin after | |||||||||||||||||
provision for loan losses | 426.0 | 5.4 | 385.8 | 5.8 | 344.0 | 6.4 | |||||||||||
Other income | ― | ― | 0.1 | ― | ― | ― | |||||||||||
Direct expenses: | |||||||||||||||||
Payroll and fringe benefit expense | -25.3 | -0.3 | -22.6 | -0.3 | -21.2 | -0.4 | |||||||||||
Other direct expenses | -33.4 | -0.4 | -27.1 | -0.4 | -23.5 | -0.4 | |||||||||||
Total direct expenses | -58.7 | -0.7 | -49.7 | -0.8 | -44.7 | -0.8 | |||||||||||
CarMax Auto Finance income | $ | 367.3 | 4.7 | $ | 336.2 | 5.1 | $ | 299.3 | 5.6 | ||||||||
Total average managed receivables | $ | 7,859.9 | $ | 6,629.5 | $ | 5,385.5 | |||||||||||
(1) Percent of total average managed receivables. | |||||||||||||||||
Auto_Loan_Receivables
Auto Loan Receivables | 12 Months Ended | ||||||||||
Feb. 28, 2015 | |||||||||||
Auto Loan Receivables [Abstract] | |||||||||||
Auto Loan Receivables | 4.Auto Loan Receivables | ||||||||||
Auto loan receivables include amounts due from customers related to retail vehicle sales financed through CAF and are presented net of an allowance for estimated loan losses. We generally use warehouse facilities to fund auto loan receivables originated by CAF until we elect to fund them through a term securitization or alternative funding arrangement. The majority of the auto loan receivables serve as collateral for the related non-recourse notes payable of $8.47 billion as of February 28, 2015, and $7.25 billion as of February 28, 2014. See Notes 2(F) and 11 for additional information on securitizations and non-recourse notes payable. | |||||||||||
Auto Loans Receivable, Net | |||||||||||
As of February 28 | |||||||||||
(In millions) | 2015 | 2014 | |||||||||
Warehouse facilities | $ | 986.0 | $ | 879.0 | |||||||
Term securitizations | 7,226.5 | 6,145.5 | |||||||||
Other receivables (1) | 246.2 | 159.9 | |||||||||
Total ending managed receivables | 8,458.7 | 7,184.4 | |||||||||
Accrued interest and fees | 31.2 | 26.3 | |||||||||
Other | 27.3 | 7.0 | |||||||||
Less allowance for loan losses | -81.7 | -69.9 | |||||||||
Auto loan receivables, net | $ | 8,435.5 | $ | 7,147.8 | |||||||
(1)Other receivables includes receivables not funded through the warehouse facilities or term securitizations. | |||||||||||
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 assigned a grade of “A” are determined to have the highest probability of repayment, and 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. | |||||||||||
CAF uses a combination of the initial credit grades and historical performance to monitor the credit quality of the auto loan receivables 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 February 28 | |||||||||||
(In millions) | 2015 (1) | % (2) | 2014 (1) | % (2) | |||||||
A | $ | 4,135.6 | 48.9 | $ | 3,506.0 | 48.8 | |||||
B | 3,055.3 | 36.1 | 2,658.5 | 37.0 | |||||||
C and other | 1,267.8 | 15.0 | 1,019.9 | 14.2 | |||||||
Total ending managed receivables | $ | 8,458.7 | 100.0 | $ | 7,184.4 | 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 | |||||||||||
As of February 28 | |||||||||||
(In millions) | 2015 | % (1) | 2014 | % (1) | |||||||
Balance as of beginning of year | $ | 69.9 | 0.97 | $ | 57.3 | 0.97 | |||||
Charge-offs | -155.9 | -134.3 | |||||||||
Recoveries | 85.4 | 74.7 | |||||||||
Provision for loan losses | 82.3 | 72.2 | |||||||||
Balance as of end of year | $ | 81.7 | 0.97 | $ | 69.9 | 0.97 | |||||
(1)Percent of total ending managed receivables. | |||||||||||
The allowance for loan losses represents an estimate of the amount of net losses inherent in our portfolio of managed receivables as of the applicable reporting date and anticipated to occur during the following 12 months. The allowance is primarily based on the credit quality of the underlying receivables, historical loss trends and forecasted forward loss curves. We also take into account recent trends in delinquencies and losses, recovery rates and the economic environment. The provision for loan losses is the periodic expense of maintaining an adequate allowance. | |||||||||||
Past Due Receivables | |||||||||||
As of February 28 | |||||||||||
(In millions) | 2015 | % (1) | 2014 | % (1) | |||||||
Total ending managed receivables | $ | 8,458.7 | 100.0 | $ | 7,184.4 | 100.0 | |||||
Delinquent loans: | |||||||||||
31-60 days past due | $ | 152.1 | 1.8 | $ | 126.6 | 1.8 | |||||
61-90 days past due | 52.5 | 0.6 | 42.6 | 0.6 | |||||||
Greater than 90 days past due | 16.8 | 0.2 | 16.0 | 0.2 | |||||||
Total past due | $ | 221.4 | 2.6 | $ | 185.2 | 2.6 | |||||
(1)Percent of total ending managed receivables. | |||||||||||
Derivative_Instruments_And_Hed
Derivative Instruments And Hedging Activities | 12 Months Ended | |||||||||||||
Feb. 28, 2015 | ||||||||||||||
Derivative Instruments And Hedging Activities [Abstract] | ||||||||||||||
Derivative Instruments And Hedging Activities | 5.Derivative Instruments and Hedging Activities | |||||||||||||
Risk Management Objective of Using Derivatives. We use derivatives to manage certain risks arising from both our business operations and economic conditions, particularly with regard to future issuances of fixed-rate debt and existing and future issuances of floating-rate debt. Primary exposures include LIBOR and other rates used as benchmarks in our securitizations. We enter into derivative instruments to manage exposures that arise from business activities that result in the future known receipt or payment of uncertain cash amounts, the values of which are impacted by interest rates. Our derivative instruments are used to manage 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 loan receivables. In December 2014, we entered into an interest rate derivative contract related to the closing of a $300 million floating rate term loan to manage exposure to variable interest rates associated with the term loan, as further discussed at Note 11. | ||||||||||||||
We do not anticipate significant market risk from derivatives as they are predominantly used to match funding costs to the use of the funding. However, disruptions in the credit or interest rate markets could impact the effectiveness of our hedging strategies. | ||||||||||||||
Credit risk is the exposure to nonperformance of another party to an agreement. We mitigate credit risk by dealing with highly rated bank counterparties. | ||||||||||||||
Designated Cash Flow Hedges – Securitizations. Our objectives in using interest rate derivatives in conjunction with our securitization program are to add stability to CAF’s interest expense, to manage our exposure to interest rate movements and to better match funding costs to the interest received on the receivables being securitized. To accomplish these objectives, we primarily use interest rate swaps that involve the receipt of variable amounts from a counterparty in exchange for our making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. These interest rate swaps are designated as cash flow hedges of forecasted interest payments in anticipation of permanent funding in the term securitization market. | ||||||||||||||
For these derivatives that are designated and qualify as cash flow hedges, the effective portion of changes in the fair value is initially recorded in accumulated other comprehensive loss (“AOCL”) and is subsequently reclassified into CAF income in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in CAF income. Amounts reported in AOCL related to these derivatives will be reclassified to CAF income as interest expense is incurred on our future issuances of fixed-rate debt. During the next 12 months, we estimate that an additional $10.1 million will be reclassified as a decrease to CAF income. | ||||||||||||||
In addition, in fiscal 2015 we issued floating rate notes in one term securitization. To manage our exposure to interest rate movements, we entered into an interest rate swap that involved the receipt of variable amounts from a counterparty in exchange for making fixed-rate payments over the estimated life of the note. This derivative is designated and qualifies as a cash flow hedge. The ineffective portion of the change in fair value of the derivatives is recognized directly in CAF income. The hedge was fully effective in fiscal 2015 and changes in the fair value were recorded in AOCL. | ||||||||||||||
Designated Cash Flow Hedge – Other Debt. Our objective in using an interest rate derivative for our term loan is to manage our exposure to interest rate movements. To accomplish this objective, we use an interest rate swap that involves the receipt of variable amounts from a counterparty in exchange for our making fixed-rate payments over the life of the loan without exchange of the underlying notional amount. This derivative instrument, issued in fiscal 2015, is designated and qualifies as a cash flow hedge, where the effective portion of the changes in the fair value is recorded in AOCL. The ineffective portion of the change in fair value is recognized in current income. There was no ineffectiveness recognized related to this derivative in fiscal 2015. | ||||||||||||||
As of February 28, 2015 and 2014, we had interest rate swaps outstanding with a combined notional amount of $1,403.0 million and $869.0 million, respectively that were designated as cash flow hedges of interest rate risk. | ||||||||||||||
As of February 28, 2015 and 2014, all derivatives were designated as accounting hedges. | ||||||||||||||
Fair Values of Derivative Instruments | ||||||||||||||
As of February 28 | ||||||||||||||
2015 | 2014 | |||||||||||||
(In thousands) | Assets | Liabilities | Assets | Liabilities | ||||||||||
Derivatives designated as accounting hedges: | ||||||||||||||
Interest rate swaps (1) | $ | 1,201 | $ | ― | $ | ― | $ | ― | ||||||
Interest rate swaps (2) | ― | -1,064 | ― | -1,351 | ||||||||||
Total derivatives designated as accounting hedges | 1,201 | -1,064 | ― | -1,351 | ||||||||||
Total | $ | 1,201 | $ | -1,064 | $ | ― | $ | -1,351 | ||||||
(1)Reported in other current assets on the consolidated balance sheets. | ||||||||||||||
(2)Reported in accounts payable on the consolidated balance sheets. | ||||||||||||||
Effect of Derivative Instruments on Comprehensive Income | ||||||||||||||
Years Ended February 28 | ||||||||||||||
(In thousands) | 2015 | 2014 | 2013 | |||||||||||
Derivatives designated as accounting hedges: | ||||||||||||||
Loss recognized in AOCL (1) | $ | -5,847 | $ | -5,286 | $ | -6,691 | ||||||||
Loss reclassified from AOCL into CAF income (1) | $ | -8,118 | $ | -9,872 | $ | -12,981 | ||||||||
Gain recognized in CAF income (2) | $ | ― | $ | 76 | $ | ― | ||||||||
Derivatives not designated as accounting hedges: | ||||||||||||||
Loss recognized in CAF income (3) | $ | ― | $ | ― | $ | -2 | ||||||||
-1 | Represents the effective portion. | |||||||||||||
-2 | Represents the ineffective portion. | |||||||||||||
-3 | Represents the loss on interest rate swaps, the net periodic settlements and accrued interest. | |||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||
Feb. 28, 2015 | ||||||||||
Fair Value Measurements [Abstract] | ||||||||||
Fair Value Measurements | 6.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 1Inputs include unadjusted quoted prices in active markets for identical assets or liabilities that we can access at the measurement date. | ||||||||||
Level 2Inputs 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 3Inputs 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 either cash and cash equivalents or other assets, and consist of highly liquid investments with original maturities of three months or less. We use quoted market prices for identical assets to measure fair value. Therefore, all money market securities are classified as Level 1. | ||||||||||
Mutual Fund Investments. Mutual fund investments consist of publicly traded mutual funds that primarily include diversified investments in large-, mid- and small-cap domestic and international companies. The investments, which are included in other assets, are held in a rabbi trust established to fund informally our executive deferred compensation plan. We use quoted active market prices for identical assets to measure fair value. Therefore, all mutual fund investments are classified as Level 1. | ||||||||||
Derivative Instruments. The fair values of our derivative instruments are included in either other current assets or accounts payable. As described in Note 5, as part of our risk management strategy, we utilize derivative instruments to manage 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 loan receivables as well as to manage exposure to variable interest rates on our term loan. 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 February 28, 2015 | ||||||||||
(In thousands) | Level 1 | Level 2 | Total | |||||||
Assets: | ||||||||||
Money market securities | $ | 43,250 | $ | ― | $ | 43,250 | ||||
Mutual fund investments | 9,242 | ― | 9,242 | |||||||
Derivative instruments | ― | 1,201 | 1,201 | |||||||
Total assets at fair value | $ | 52,492 | $ | 1,201 | $ | 53,693 | ||||
Percent of total assets at fair value | 97.8 | % | 2.2 | % | 100.0 | % | ||||
Percent of total assets | 0.4 | % | ― | % | 0.4 | % | ||||
Liabilities: | ||||||||||
Derivative instruments | $ | ― | $ | -1,064 | $ | -1,064 | ||||
Total liabilities at fair value | $ | ― | $ | -1,064 | $ | -1,064 | ||||
Percent of total liabilities | ― | % | ― | % | ― | % | ||||
As of February 28, 2014 | ||||||||||
(In thousands) | Level 1 | Level 2 | Total | |||||||
Assets: | ||||||||||
Money market securities | $ | 641,622 | $ | ― | $ | 641,622 | ||||
Mutual fund investments | 5,609 | ― | 5,609 | |||||||
Total assets at fair value | $ | 647,231 | $ | ― | $ | 647,231 | ||||
Percent of total assets at fair value | 100.0 | % | ― | % | 100.0 | % | ||||
Percent of total assets | 5.5 | % | ― | % | 5.5 | % | ||||
Liabilities: | ||||||||||
Derivative instruments | $ | ― | $ | 1,351 | $ | 1,351 | ||||
Total liabilities at fair value | $ | ― | $ | 1,351 | $ | 1,351 | ||||
Percent of total liabilities | ― | % | ― | % | ― | % | ||||
There were no transfers between Levels 1 and 2 for the years ended February 28, 2015 and 2014. | ||||||||||
The table above excludes restricted cash from collections on auto loan receivables and restricted cash on deposit in reserve accounts as they are for the benefit of holders of non-recourse notes payable. These amounts are invested in money market securities (Level 1) and totaled $336.8 million as of February 28, 2015, and $291.8 million as of February 28, 2014. | ||||||||||
Property_And_Equipment
Property And Equipment | 12 Months Ended | ||||||
Feb. 28, 2015 | |||||||
Property And Equipment [Abstract] | |||||||
Property And Equipment | 7.Property and Equipment | ||||||
As of February 28 | |||||||
(In thousands) | 2015 | 2014 | |||||
Land | $ | 397,097 | $ | 346,518 | |||
Land held for sale | 1,191 | 1,050 | |||||
Land held for development | 151,306 | 170,387 | |||||
Buildings | 1,389,063 | 1,244,772 | |||||
Capital leases | 1,739 | 1,739 | |||||
Leasehold improvements | 146,140 | 129,186 | |||||
Furniture, fixtures and equipment | 389,650 | 343,958 | |||||
Construction in progress | 209,058 | 145,923 | |||||
Total property and equipment | 2,685,244 | 2,383,533 | |||||
Less accumulated depreciation and amortization | 822,706 | 730,556 | |||||
Property and equipment, net | $ | 1,862,538 | $ | 1,652,977 | |||
Land held for development represents land owned for potential store growth. Leased property meeting capital lease criteria is capitalized and the present value of the related lease payments is recorded as long-term debt. Amortization of capital leased assets is included in depreciation expense, and accumulated amortization was $0.4 million as of February 28, 2015 and $0.3 million as of February 28, 2014. Depreciation expense was $105.7 million in fiscal 2015, $90.4 million in fiscal 2014 and $82.3 million in fiscal 2013. | |||||||
Cancellation_Reserves
Cancellation Reserves | 12 Months Ended | |||||
Feb. 28, 2015 | ||||||
Cancellation Reserves [Abstract] | ||||||
Cancellation Reserves | 8. Cancellation Reserves | |||||
We recognize commission revenue for EPP products at the time of sale, net of a reserve 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 credit mix of the customer base. | ||||||
Cancellation Reserves | ||||||
As of February 28 | ||||||
(In millions) | 2015 | 2014 | ||||
Balance as of beginning of year | $ | 72.5 | $ | 32.7 | ||
Cancellations | -49.1 | -36.9 | ||||
Provision for future cancellations | 71.0 | 76.7 | ||||
Balance as of end of year | $ | 94.4 | $ | 72.5 | ||
The current portion of estimated cancellation reserves is recognized as a component of other accrued expenses with the remaining amount recognized in other liabilities. As of February 28, 2015 and 2014, the current portion of cancellation reserves was $44.8 million and $33.9 million, respectively. | ||||||
In the fourth quarter of fiscal 2014, the company reviewed the assumptions used in developing its cancellation reserves for EPP products and incorporated additional data into a more sophisticated model as part of our evaluation of the cancellation rates. This additional data included changes in the product and administration of the product by the company and changes in the credit mix of the customer base. Based on our evaluation, we determined that this additional data should have been considered in our previous assessments of cancellation reserves. We corrected this accounting error by increasing the cancellation reserves and reducing other sales and revenue. Fiscal 2014 net earnings were reduced by $11.9 million (net of tax of $7.6 million), or $0.05 per share, pertaining to fiscal 2013 and fiscal 2012. The out of period error was not material to fiscal 2014 or any previously reported interim or annual period. | ||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||
Feb. 28, 2015 | ||||||||||
Income Taxes [Abstract] | ||||||||||
Income Taxes | 9.Income Taxes | |||||||||
Income Tax Provision | ||||||||||
Years Ended February 28 | ||||||||||
(In thousands) | 2015 | 2014 | 2013 | |||||||
Current: | ||||||||||
Federal | $ | 329,211 | $ | 283,174 | $ | 232,652 | ||||
State | 47,061 | 38,747 | 30,557 | |||||||
Total | 376,272 | 321,921 | 263,209 | |||||||
Deferred: | ||||||||||
Federal | -3,499 | -15,129 | 4,705 | |||||||
State | -800 | -2,056 | -847 | |||||||
Total | -4,299 | -17,185 | 3,858 | |||||||
Income tax provision | $ | 371,973 | $ | 304,736 | $ | 267,067 | ||||
Effective Income Tax Rate Reconciliation | ||||||||||
Years Ended February 28 | ||||||||||
2015 | 2014 | 2013 | ||||||||
Federal statutory income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||||
State and local income taxes, net of federal benefit | 3.4 | 3.1 | 2.9 | |||||||
Nondeductible and other items | 0.2 | 0.2 | 0.2 | |||||||
Credits | -0.2 | -0.1 | ― | |||||||
Effective income tax rate | 38.4 | % | 38.2 | % | 38.1 | % | ||||
Temporary Differences Resulting in Deferred Tax Assets and Liabilities | ||||||||||
As of February 28 | ||||||||||
(In thousands) | 2015 | 2014 | ||||||||
Deferred tax assets: | ||||||||||
Accrued expenses | $ | 52,933 | $ | 48,611 | ||||||
Partnership basis | 95,443 | 71,503 | ||||||||
Stock compensation | 63,148 | 60,158 | ||||||||
Derivatives | 4,010 | 4,896 | ||||||||
Capital loss carry forward | 1,597 | 1,296 | ||||||||
Total gross deferred tax assets | 217,131 | 186,464 | ||||||||
Less: valuation allowance | -1,597 | -1,296 | ||||||||
Net gross deferred tax assets | 215,534 | 185,168 | ||||||||
Deferred tax liabilities: | ||||||||||
Prepaid expenses | 17,935 | 13,991 | ||||||||
Property and equipment | 14,816 | 3,737 | ||||||||
Inventory | 7,045 | 7,375 | ||||||||
Total gross deferred tax liabilities | 39,796 | 25,103 | ||||||||
Net deferred tax asset | $ | 175,738 | $ | 160,065 | ||||||
Except for amounts for which a valuation allowance has been provided, we believe it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets. The valuation allowance as of February 28, 2015, relates to capital loss carryforwards that are not more likely than not to be utilized prior to their expiration. | ||||||||||
Reconciliation of Unrecognized Tax Benefits | ||||||||||
Years Ended February 28 | ||||||||||
(In thousands) | 2015 | 2014 | 2013 | |||||||
Balance at beginning of year | $ | 26,330 | $ | 25,059 | $ | 20,930 | ||||
Increases for tax positions of prior years | 1,549 | 1,523 | 1,685 | |||||||
Decreases for tax positions of prior years | -5,999 | -4,658 | -596 | |||||||
Increases based on tax positions related to the current year | 5,467 | 5,960 | 7,491 | |||||||
Settlements | -612 | -809 | -4,136 | |||||||
Lapse of statute | -1,784 | -745 | -315 | |||||||
Balance at end of year | $ | 24,951 | $ | 26,330 | $ | 25,059 | ||||
As of February 28, 2015, we had $25.0 million of gross unrecognized tax benefits, $9.6 million of which, if recognized, would affect our effective tax rate. It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain of our uncertain tax positions will increase or decrease during the next 12 months; however, we do not expect the change to have a significant effect on our results of operations, financial condition or cash flows. As of February 28, 2014, we had $26.3 million of gross unrecognized tax benefits, $7.6 million of which, if recognized, would affect our effective tax rate. As of February 28, 2013, we had $25.1 million of gross unrecognized tax benefits, $5.4 million of which, if recognized, would affect our effective tax rate. | ||||||||||
Our continuing practice is to recognize interest and penalties related to income tax matters in SG&A expenses. Our accrual for interest and penalties decreased $0.2 million to $1.4 million as of February 28, 2015, from $1.6 million as of February 28, 2014. Our accrual for interest and penalties increased $0.3 million to $1.6 million as of February 28, 2014, from $1.3 million as of February 28, 2013. | ||||||||||
CarMax is subject to U.S. federal income tax as well as income tax of multiple states and local jurisdictions. With a few insignificant exceptions, we are no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to fiscal 2012. | ||||||||||
Benefit_Plans
Benefit Plans | 12 Months Ended | |||||||||||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||||||||||
Benefit Plans [Abstract] | ||||||||||||||||||||||||||||
Benefit Plans | 10.Benefit Plans | |||||||||||||||||||||||||||
(A) Retirement Benefit Plans | ||||||||||||||||||||||||||||
Effective December 31, 2008, we froze both of our noncontributory defined benefit plans: our pension plan (the “pension plan”) and our unfunded, nonqualified plan (the “restoration plan”), which restores retirement benefits for certain associates who are affected by Internal Revenue Code limitations on benefits provided under the pension plan. No additional benefits have accrued under these plans since that date. In connection with benefits earned prior to December 31, 2008, we have a continuing obligation to fund the pension plan and will continue to recognize net periodic pension expense for both plans. We use a fiscal year end measurement date for both the pension plan and the restoration plan. | ||||||||||||||||||||||||||||
Benefit Plan Information | ||||||||||||||||||||||||||||
As of February 28 | ||||||||||||||||||||||||||||
Pension Plan | Restoration Plan | Total | ||||||||||||||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
Change in projected benefit | ||||||||||||||||||||||||||||
obligation: | ||||||||||||||||||||||||||||
Obligation at beginning of year | $ | 177,674 | $ | 177,531 | $ | 10,187 | $ | 9,408 | $ | 187,861 | $ | 186,939 | ||||||||||||||||
Interest cost | 8,032 | 7,583 | 453 | 433 | 8,485 | 8,016 | ||||||||||||||||||||||
Actuarial loss (gain) | 34,989 | -4,980 | 840 | 803 | 35,829 | -4,177 | ||||||||||||||||||||||
Benefits paid | -2,506 | -2,460 | -428 | -457 | -2,934 | -2,917 | ||||||||||||||||||||||
Obligation at end of year | 218,189 | 177,674 | 11,052 | 10,187 | 229,241 | 187,861 | ||||||||||||||||||||||
Change in fair value of plan assets: | ||||||||||||||||||||||||||||
Plan assets at beginning of year | 124,712 | 107,968 | ― | ― | 124,712 | 107,968 | ||||||||||||||||||||||
Actual return on plan assets | 10,732 | 19,204 | ― | ― | 10,732 | 19,204 | ||||||||||||||||||||||
Employer contributions | 2,311 | ― | 428 | 457 | 2,739 | 457 | ||||||||||||||||||||||
Benefits paid | -2,506 | -2,460 | -428 | -457 | -2,934 | -2,917 | ||||||||||||||||||||||
Plan assets at end of year | 135,249 | 124,712 | ― | ― | 135,249 | 124,712 | ||||||||||||||||||||||
Funded status recognized | $ | -82,940 | $ | -52,962 | $ | -11,052 | $ | -10,187 | $ | -93,992 | $ | -63,149 | ||||||||||||||||
Amounts recognized in the | ||||||||||||||||||||||||||||
consolidated balance sheets: | ||||||||||||||||||||||||||||
Current liability | $ | ― | $ | ― | $ | -462 | $ | -451 | $ | -462 | $ | -451 | ||||||||||||||||
Noncurrent liability | -82,940 | -52,962 | -10,590 | -9,736 | -93,530 | -62,698 | ||||||||||||||||||||||
Net amount recognized | $ | -82,940 | $ | -52,962 | $ | -11,052 | $ | -10,187 | $ | -93,992 | $ | -63,149 | ||||||||||||||||
Accumulated benefit obligation | $ | 218,189 | $ | 177,674 | $ | 11,052 | $ | 10,187 | $ | 229,241 | $ | 187,861 | ||||||||||||||||
Benefit Obligations. Accumulated and projected benefit obligations (“ABO” and “PBO”) represent the obligations of the benefit plans for past service as of the measurement date. ABO is the present value of benefits earned to date with benefits computed based on current service and compensation levels. PBO is ABO increased to reflect expected future service and increased compensation levels. As a result of the freeze of plan benefits under our pension and restoration plans as of December 31, 2008, the ABO and PBO balances are equal to one another at all subsequent dates. | ||||||||||||||||||||||||||||
Assumptions Used to Determine Benefit Obligations | ||||||||||||||||||||||||||||
As of February 28 | ||||||||||||||||||||||||||||
Pension Plan | Restoration Plan | |||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||
Discount rate (1) | 4.00 | % | 4.55 | % | 4.00 | % | 4.55 | % | ||||||||||||||||||||
(1)For the restoration plan, the discount rate presented is applied to the pre-2004 annuity amounts. A rate of 4.50% is assumed for the post-2004 lump sum amounts paid from the plan for fiscal 2015 and fiscal 2014. | ||||||||||||||||||||||||||||
Fair Value of Plan Assets And Fair Value Hierarchy | ||||||||||||||||||||||||||||
As of February 28 | ||||||||||||||||||||||||||||
(In thousands) | 2015 | 2014 | ||||||||||||||||||||||||||
Mutual funds (Level 1): | ||||||||||||||||||||||||||||
Equity securities (1) | $ | 84,303 | $ | 78,576 | ||||||||||||||||||||||||
Equity securities – international (2) | 17,114 | 15,649 | ||||||||||||||||||||||||||
Fixed income securities (3) | 32,549 | 29,500 | ||||||||||||||||||||||||||
Collective funds (Level 2): | ||||||||||||||||||||||||||||
Short-term investments (4) | 1,341 | 1,046 | ||||||||||||||||||||||||||
Investment payables, net | -58 | -59 | ||||||||||||||||||||||||||
Total | $ | 135,249 | $ | 124,712 | ||||||||||||||||||||||||
(1)Includes large-, mid- and small-cap companies primarily from diverse U.S. industries including pharmaceutical, bank, oil and gas, retail and computer sectors; approximately 95% of securities relate to U.S. entities and 5% of securities relate to non-U.S. entities as of February 28, 2015 (95% and 5%, respectively, as of February 28, 2014) . | ||||||||||||||||||||||||||||
(2)Consists of equity securities of primarily foreign corporations from diverse industries including bank, pharmaceutical, insurance, telecommunication, food, and oil and gas sectors; 100% of securities relate to non-U.S. entities as of February 28, 2015 (100% relate to non-U.S. entities, as of February 28, 2014). | ||||||||||||||||||||||||||||
(3)Includes debt securities of U.S. and foreign governments, their agencies and corporations, and diverse investments in mortgage-backed securities and banks; approximately 85% of securities relate to U.S. entities and 15% of securities relate to non-U.S. entities as of February 28, 2015 (90% and 10%, respectively, as of February 28, 2014). | ||||||||||||||||||||||||||||
(4)Includes pooled funds representing short-term instruments that include governments, their agencies and corporations and large-, mid- and small-cap companies primarily from the U.S. bank sector; nearly 100% of securities relate to U.S. entities as of February 28, 2015 (nearly 100% as of February 28, 2014). | ||||||||||||||||||||||||||||
Plan Assets. Our pension plan assets are held in trust and management sets the investment policies and strategies. Long-term strategic investment objectives include asset preservation and appropriately balancing risk and return. We oversee the investment allocation process, which includes selecting investment managers, setting long-term strategic targets and monitoring asset allocations and performance. Target allocations for plan assets are guidelines, not limitations, and occasionally plan fiduciaries may approve allocations above or below the targets. We target allocating 75% of plan assets to equity and equity-related instruments and 25% to fixed income securities. Equity securities are currently composed of mutual funds that include highly diversified investments in large-, mid- and small-cap companies located in the United States and internationally. The fixed income securities are currently composed of mutual funds that include investments in debt securities, mortgage-backed securities, corporate bonds and other debt obligations primarily in the United States. We do not expect any plan assets to be returned to us during fiscal 2016. Plan assets also include collective funds, which are public investment vehicles with the underlying assets representing high quality, short-term instruments that include securities of governments, their agencies and corporations and large, mid, and small cap companies located in the United States and internationally. | ||||||||||||||||||||||||||||
The fair values of the plan’s assets are provided by the plan’s trustee and the investment managers. Within the fair value hierarchy (see Note 6), the mutual funds are classified as Level 1 as quoted active market prices for identical assets are used to measure fair value. The collective funds are public investment vehicles valued using a net asset value (“NAV”) provided by the plan’s trustee as a practical expedient for measuring the fair value. The NAV is based on the underlying net assets owned by the fund divided by the number of shares outstanding. The NAV’s unit price is quoted on a private market that was not active. However, the NAV is based on the fair value of the underlying securities within the fund, which were traded on an active market and valued at the closing price reported on the active market on which those individual securities are traded. The collective funds may be liquidated with minimal restrictions and are classified as Level 2. | ||||||||||||||||||||||||||||
Funding Policy. For the pension plan, we contribute amounts sufficient to meet minimum funding requirements as set forth in the employee benefit and tax laws, plus any additional amounts as we may determine to be appropriate. We do not expect to make any contributions to the pension plan in fiscal 2016. For the non-funded restoration plan, we contribute an amount equal to the benefit payments. | ||||||||||||||||||||||||||||
Estimated Future Benefit Payments | ||||||||||||||||||||||||||||
Pension | Restoration | |||||||||||||||||||||||||||
(In thousands) | Plan | Plan | ||||||||||||||||||||||||||
Fiscal 2016 | $ | 2,500 | $ | 462 | ||||||||||||||||||||||||
Fiscal 2017 | $ | 2,798 | $ | 474 | ||||||||||||||||||||||||
Fiscal 2018 | $ | 3,097 | $ | 482 | ||||||||||||||||||||||||
Fiscal 2019 | $ | 3,474 | $ | 482 | ||||||||||||||||||||||||
Fiscal 2020 | $ | 3,867 | $ | 492 | ||||||||||||||||||||||||
Fiscal 2021 to 2025 | $ | 26,563 | $ | 2,904 | ||||||||||||||||||||||||
Components of Net Pension Expense | ||||||||||||||||||||||||||||
Years Ended February 28 | ||||||||||||||||||||||||||||
(In thousands) | Pension Plan | Restoration Plan | Total | |||||||||||||||||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 | ||||||||||||||||||||
Interest cost | $ | 8,032 | $ | 7,583 | $ | 7,299 | $ | 453 | $ | 433 | $ | 458 | $ | 8,485 | $ | 8,016 | $ | 7,757 | ||||||||||
Expected return on | ||||||||||||||||||||||||||||
plan assets | -9,030 | -7,916 | -7,591 | ― | ― | ― | -9,030 | -7,916 | -7,591 | |||||||||||||||||||
Recognized actuarial | ||||||||||||||||||||||||||||
loss | 1,361 | 1,674 | 1,200 | ― | ― | ― | 1,361 | 1,674 | 1,200 | |||||||||||||||||||
Net pension expense | $ | 363 | $ | 1,341 | $ | 908 | $ | 453 | $ | 433 | $ | 458 | $ | 816 | $ | 1,774 | $ | 1,366 | ||||||||||
Changes Recognized in Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||||
Years Ended February 28 | ||||||||||||||||||||||||||||
Pension Plan | Restoration Plan | Total | ||||||||||||||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
Net actuarial loss (gain) | $ | 33,286 | $ | -16,268 | $ | 840 | $ | 803 | $ | 34,126 | $ | -15,465 | ||||||||||||||||
In fiscal 2016, we anticipate that $1.9 million in estimated actuarial losses of the pension plan will be amortized from accumulated other comprehensive loss. We do not anticipate that any appreciable estimated actuarial losses will be amortized from accumulated other comprehensive loss for the restoration plan. | ||||||||||||||||||||||||||||
Assumptions Used to Determine Net Pension Expense | ||||||||||||||||||||||||||||
Years Ended February 28 | ||||||||||||||||||||||||||||
Pension Plan | Restoration Plan | |||||||||||||||||||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||||||||||||
Discount rate (1) | 4.55 | % | 4.30 | % | 4.75 | % | 4.55 | % | 4.30 | % | 4.75 | % | ||||||||||||||||
Expected rate of return on plan assets | 7.75 | % | 7.75 | % | 7.75 | % | ― | ― | ― | |||||||||||||||||||
(1)For the restoration plan, the discount rate presented is applied to the pre-2004 annuity amounts. A rate of 4.50% is assumed for post-2004 lump sum amounts paid from the plan for fiscal 2015, fiscal 2014 and fiscal 2013. | ||||||||||||||||||||||||||||
Assumptions. Underlying both the calculation of the PBO and the net pension expense are actuarial calculations of each plan’s liability. These calculations use participant-specific information such as salary, age and years of service, as well as certain assumptions, the most significant being the discount rate, rate of return on plan assets and mortality rate. We evaluate these assumptions at least once a year and make changes as necessary. | ||||||||||||||||||||||||||||
The discount rate used for retirement benefit plan accounting reflects the yields available on high-quality, fixed income debt instruments. For our plans, we review high quality corporate bond indices in addition to a hypothetical portfolio of corporate bonds with maturities that approximate the expected timing of the anticipated benefit payments. | ||||||||||||||||||||||||||||
To determine the expected long-term return on plan assets, we consider the current and anticipated asset allocations, as well as historical and estimated returns on various categories of plan assets. We apply the estimated rate of return to a market-related value of assets, which reduces the underlying variability in the asset values. The use of expected long-term rates of return on pension plan assets could result in recognized asset returns that are greater or less than the actual returns of those pension plan assets in any given year. Over time, however, the expected long-term returns are anticipated to approximate the actual long-term returns, and therefore, result in a pattern of income and expense recognition that more closely matches the pattern of the services provided by the employees. Differences between actual and expected returns, which are a component of unrecognized actuarial gains/losses, are recognized over the average life expectancy of all plan participants. | ||||||||||||||||||||||||||||
Given the frozen status of the pension and benefit restoration plans, the rate of compensation increases is not applicable for periods subsequent to December 31, 2008. Mortality rate assumptions are based on the life expectancy of the population and were updated in fiscal 2015 to account for increases in life expectancy. This change increased the PBO and ABO. | ||||||||||||||||||||||||||||
(B) Retirement Savings 401(k) Plan | ||||||||||||||||||||||||||||
We sponsor a 401(k) plan for all associates meeting certain eligibility criteria. In conjunction with the pension plan curtailments, enhancements were made to the 401(k) plan effective January 1, 2009. The enhancements increased the maximum salary contribution for eligible associates and increased our matching contribution. Additionally, an annual company-funded contribution regardless of associate participation was implemented, as well as an additional company-funded contribution to those associates meeting certain age and service requirements. The total cost for company contributions was $27.9 million in fiscal 2015, $25.0 million in fiscal 2014 and $23.1 million in fiscal 2013. | ||||||||||||||||||||||||||||
(C) Retirement Restoration Plan | ||||||||||||||||||||||||||||
Effective January 1, 2009, we replaced the frozen restoration plan with a new non-qualified retirement plan for certain senior executives who are affected by Internal Revenue Code limitations on benefits provided under the Retirement Savings 401(k) Plan. Under this plan, these associates may continue to defer portions of their compensation for retirement savings. We match the associates’ contributions at the same rate provided under the 401(k) plan, and also provide the annual company-funded contribution made regardless of associate participation, as well as the additional company-funded contribution to the associates meeting the same age and service requirements. This plan is unfunded with lump sum payments to be made upon the associate’s retirement. The total cost for this plan was $1.0 million in fiscal 2015, $1.1 million in fiscal 2014 and $0.4 million in fiscal 2013. | ||||||||||||||||||||||||||||
(D) Executive Deferred Compensation Plan | ||||||||||||||||||||||||||||
Effective January 1, 2011, we established an unfunded nonqualified deferred compensation plan to permit certain eligible key associates to defer receipt of a portion of their compensation to a future date. This plan also includes a restorative company contribution designed to compensate the plan participants for any loss of company contributions under the Retirement Savings 401(k) Plan and the Retirement Restoration Plan due to a reduction in their eligible compensation resulting from deferrals into the Executive Deferred Compensation Plan. The total cost for this plan was $0.9 million in fiscal 2015, $0.6 million in fiscal 2014 and $0.4 million in fiscal 2013. | ||||||||||||||||||||||||||||
Debt
Debt | 12 Months Ended | ||||||
Feb. 28, 2015 | |||||||
Debt [Abstract] | |||||||
Debt | |||||||
11.Debt | |||||||
As of February 28 | |||||||
(In thousands) | 2015 | 2014 | |||||
Short-term revolving credit facility | $ | 785 | $ | 582 | |||
Current portion of long-term debt | 10,000 | ― | |||||
Current portion of finance and capital lease obligations | 21,554 | 18,459 | |||||
Current portion of non-recourse notes payable | 258,163 | 223,938 | |||||
Total current debt | 290,502 | 242,979 | |||||
Long-term debt | 300,000 | ― | |||||
Finance and capital lease obligations, excluding current portion | 306,284 | 315,925 | |||||
Non-recourse notes payable, excluding current portion | 8,212,466 | 7,024,506 | |||||
Total debt, excluding current portion | 8,818,750 | 7,340,431 | |||||
Total debt | $ | 9,109,252 | $ | 7,583,410 | |||
Revolving Credit Facility. During fiscal 2015, we increased the borrowing capacity under our unsecured revolving credit facility (the “credit facility”) by $300 million to $1.0 billion. The terms of the credit facility were generally unchanged and the expiration date remains August 2016. Borrowings under the credit facility are available for working capital and general corporate purposes. Borrowings accrue interest at variable rates based on LIBOR, the federal funds rate, or the prime rate, depending on the type of borrowing, and we pay a commitment fee on the 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 with expected repayments within the next fiscal year presented as a component of current portion of long-term debt. As of February 28, 2015, the unused capacity of $989 million was fully available to us. | |||||||
The weighted average interest rate on outstanding short-term and long-term debt was 1.6% in fiscal 2015 and 1.5% in fiscal 2014 and 1.8% in fiscal 2013. | |||||||
Term Loan. In November 2014, we entered into a $300 million term loan with total outstanding principal due in November 2017. The term loan accrues interest at variable rates (1.67% as of February 28, 2015) based on the LIBOR rate, the federal funds rate, or the prime rate. As of February 28, 2015, $300 million remained outstanding and no repayments are anticipated to be made within the next 12 months. Borrowings under the loan are available for working capital and general corporate purposes. In December 2014, we entered into an interest rate derivative contract to manage our exposure to variable interest rates associated with this term loan. | |||||||
Finance and Capital Lease Obligations. Finance and capital lease obligations relate primarily to stores subject to sale-leaseback transactions that did not qualify for sale accounting, and therefore, are accounted for as financings. The leases were structured at varying interest rates and generally have initial lease terms ranging from 15 to 20 years with payments made monthly. Payments on the leases are recognized as interest expense and a reduction of the obligations. We have not entered into any sale-leaseback transactions since fiscal 2009. During fiscal 2015, finance lease obligations were increased by $11.7 million related to leases that were modified or extended beyond the original lease term. See Note 15 for information on future minimum lease obligations. | |||||||
Non-Recourse Notes Payable. The non-recourse notes payable relate to auto loan receivables funded through term securitizations and our warehouse facilities. The timing of principal payments on the non-recourse notes payable is based on the timing of principal collections and defaults on the securitized auto loan receivables. The current portion of non-recourse notes payable represents principal payments that are due to be distributed in the following period. | |||||||
As of February 28, 2015, $7.48 billion of non-recourse notes payable was outstanding related to term securitizations. These notes payable accrue interest predominantly at fixed rates and have scheduled maturities through September 2021, but may mature earlier, depending upon the repayment rate of the underlying auto loan receivables. | |||||||
As of February 28, 2015, $986.0 million of non-recourse notes payable was outstanding related to our warehouse facilities. The combined warehouse facility limit was $2.3 billion, and unused warehouse capacity totaled $1.31 billion. During fiscal 2015 we increased the combined limit of our warehouse facilities by $500 million. During fiscal 2015, we renewed our $800 million warehouse facility that was scheduled to expire in August 2014 for an additional 364-day term, and we temporarily extended our $1.5 billion warehouse facility that was scheduled to expire in February 2015 for an additional 30-day term. In March 2015, we renewed our $1.5 billion warehouse facility and it is scheduled to expire in February 2016. Of the combined warehouse facility limit, $1.5 billion will expire in February 2016 and $800 million will expire in July 2015. The return requirements of 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 Notes 2(F) and 4 for additional information on the related securitized auto loan receivables. | |||||||
We capitalize interest in connection with the construction of certain facilities. We capitalized interest of $8.9 million in fiscal 2015; no interest was capitalized in fiscal 2014 or fiscal 2013. | |||||||
Financial Covenants. The credit facility and term loan agreements contain representations and warranties, conditions and covenants. We must also meet financial covenants in conjunction with certain of the sale-leaseback transactions. Our securitization agreements contain representations and warranties, financial covenants and performance triggers. As of February 28, 2015, we were in compliance with all financial covenants and our securitized receivables were in compliance with the related performance triggers. | |||||||
Stock_And_StockBased_Incentive
Stock And Stock-Based Incentive Plans | 12 Months Ended | ||||||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||||||
Stock And Stock-Based Incentive Plans [Abstract] | |||||||||||||||||||||
Stock And Stock-Based Incentive Plans | 12.Stock and Stock-Based Incentive Plans | ||||||||||||||||||||
(A) Preferred Stock | |||||||||||||||||||||
Under the terms of our Articles of Incorporation, the board of directors may determine the rights, preferences and terms of our authorized but unissued shares of preferred stock. We have authorized 20,000,000 shares of preferred stock, $20 par value. No shares of preferred stock are currently outstanding. | |||||||||||||||||||||
(B) Share Repurchase Program | |||||||||||||||||||||
In fiscal 2013, our board of directors authorized the repurchase of up to $800 million of our common stock which was exhausted in fiscal 2015. In fiscal 2015, our board of directors authorized the repurchase of up to an additional $3 billion of our common stock of which $1 billion expires on December 31, 2015, and $2 billion expires on December 31, 2016. | |||||||||||||||||||||
Common Stock Repurchases | |||||||||||||||||||||
Years Ended February 28 | |||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
Number of shares repurchased (in thousands) | 17,511.0 | 6,859.5 | 5,762.0 | ||||||||||||||||||
Average cost per share | $ | 52.13 | $ | 44.61 | $ | 36.77 | |||||||||||||||
Available for repurchase, as of end of year (in millions) | $ | 2,369.3 | $ | 282.1 | $ | 588.1 | |||||||||||||||
(C) Stock Incentive Plans | |||||||||||||||||||||
We maintain long-term incentive plans for management, key employees and the nonemployee members of our board of directors. The plans allow for the granting of equity-based compensation awards, including nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock awards, stock- and cash-settled restricted stock units, stock grants or a combination of awards. To date, we have not awarded any incentive stock options. | |||||||||||||||||||||
As of February 28, 2015, a total of 50,200,000 shares of our common stock had been authorized to be issued under the long-term incentive plans. The number of unissued common shares reserved for future grants under the long-term incentive plans was 8,394,601 as of that date. | |||||||||||||||||||||
The majority of associates who receive share-based compensation awards primarily receive cash-settled restricted stock units. Senior management and other key associates receive awards of nonqualified stock options and stock-settled restricted stock units. Nonemployee directors receive awards of nonqualified stock options, stock grants and/or restricted stock awards. Excluding stock grants, all share-based compensation awards, including any associated dividend rights, are subject to forfeiture. | |||||||||||||||||||||
Nonqualified Stock Options. Nonqualified stock options are awards that allow the recipient to purchase shares of our common stock at a fixed price. Stock options are granted at an exercise price equal to the fair market value of our common stock on the grant date. The stock options generally vest annually in equal amounts over periods of one to four years. These options expire no later than ten years after the date of the grant. | |||||||||||||||||||||
Cash-Settled Restricted Stock Units. Also referred to as restricted stock units, or RSUs, these are awards that entitle the holder to a cash payment equal to the fair market value of a share of our common stock for each unit granted. Conversion generally occurs at the end of a three-year vesting period. However, the cash payment per RSU will not be greater than 200% or less than 75% of the fair market value of a share of our common stock on the grant date. RSUs are liability awards and do not have voting rights. | |||||||||||||||||||||
Stock-Settled Restricted Stock Units. Also referred to as market stock units, or MSUs, these are awards to eligible key associates that are converted into between zero and two shares of common stock for each unit granted. Conversion generally occurs at the end of a three-year vesting period. The conversion ratio is calculated by dividing the average closing price of our stock during the final forty trading days of the three-year vesting period by our stock price on the grant date, with the resulting quotient capped at two. This quotient is then multiplied by the number of MSUs granted to yield the number of shares awarded. MSUs do not have voting rights. | |||||||||||||||||||||
Restricted Stock. Restricted stock awards (RSAs) are awards of our common stock that are subject to specified restrictions that lapse one year from the grant date. Participants holding restricted stock are entitled to vote on matters submitted to holders of our common stock for a vote. During the fiscal year ended February 28, 2015, we granted to our non-employee board of directors RSAs of 22,860 shares at a fair value per share on the grant date of $51.18. No RSAs were outstanding during fiscal 2014 and 2013. The unrecognized compensation costs related to nonvested RSAs totaled $0.1 million as of February 28, 2015. These costs are expected to be recognized on a straight-line basis over a weighted average period of 0.3 years. | |||||||||||||||||||||
(D) Share-Based Compensation | |||||||||||||||||||||
Composition of ShareBased Compensation Expense | |||||||||||||||||||||
Years Ended February 28 | |||||||||||||||||||||
(In thousands) | 2015 | 2014 | 2013 | ||||||||||||||||||
Cost of sales | $ | 4,236 | $ | 3,200 | $ | 3,010 | |||||||||||||||
CarMax Auto Finance income | 5,898 | 2,983 | 2,521 | ||||||||||||||||||
Selling, general and administrative expenses | 73,020 | 61,487 | 57,643 | ||||||||||||||||||
Share-based compensation expense, before income taxes | $ | 83,154 | $ | 67,670 | $ | 63,174 | |||||||||||||||
Composition of ShareBased Compensation Expense – By Grant Type | |||||||||||||||||||||
Years Ended February 28 | |||||||||||||||||||||
(In thousands) | 2015 | 2014 | 2013 | ||||||||||||||||||
Nonqualified stock options | $ | 28,954 | $ | 23,914 | $ | 24,853 | |||||||||||||||
Cash-settled restricted stock units | 38,539 | 29,551 | 24,268 | ||||||||||||||||||
Stock-settled restricted stock units | 13,299 | 12,515 | 12,441 | ||||||||||||||||||
Employee stock purchase plan | 1,274 | 1,190 | 1,062 | ||||||||||||||||||
Stock grants to non-employee directors | ― | 500 | 550 | ||||||||||||||||||
Restricted stock to non-employee directors | 1,088 | ― | ― | ||||||||||||||||||
Share-based compensation expense, before income taxes | $ | 83,154 | $ | 67,670 | $ | 63,174 | |||||||||||||||
We recognize compensation expense for stock options, MSUs and RSAs on a straight-line basis (net of estimated forfeitures) over the requisite service period, which is generally the vesting period of the award. The variable expense associated with RSUs is recognized over their vesting period (net of estimated forfeitures) and is calculated based on the volume-weighted average price of our common stock on the last trading day of each reporting period. The total costs for matching contributions for our employee stock purchase plan are included in share-based compensation expense. There were no capitalized share-based compensation costs as of or for the years ended February 28, 2015, 2014 or 2013. | |||||||||||||||||||||
Stock Option Activity | |||||||||||||||||||||
Weighted | |||||||||||||||||||||
Average | |||||||||||||||||||||
Weighted | Remaining | Aggregate | |||||||||||||||||||
Number of | Average | Contractual | Intrinsic | ||||||||||||||||||
(Shares and intrinsic value in thousands) | Shares | Exercise Price | Life (Years) | Value | |||||||||||||||||
Outstanding as of February 28, 2014 | 10,018 | $ | 27.02 | ||||||||||||||||||
Options granted | 2,057 | 45.08 | |||||||||||||||||||
Options exercised | -4,390 | 20.46 | |||||||||||||||||||
Options forfeited or expired | -40 | 37.44 | |||||||||||||||||||
Outstanding as of February 28, 2015 | 7,645 | $ | 35.59 | 4.3 | $ | 240,941 | |||||||||||||||
Exercisable as of February 28, 2015 | 3,597 | $ | 29.86 | 3.3 | $ | 133,975 | |||||||||||||||
We granted nonqualified options to purchase 2,056,789 shares of common stock in fiscal 2015, 1,605,149 shares in fiscal 2014 and 2,252,124 shares in fiscal 2013. The total cash received as a result of stock option exercises was $89.8 million in fiscal 2015, $45.1 million in fiscal 2014 and $71.7 million in fiscal 2013. We settle stock option exercises with authorized but unissued shares of our common stock. The total intrinsic value of options exercised was $153.3 million for fiscal 2015, $62.5 million for fiscal 2014 and $68.0 million for fiscal 2013. We realized related tax benefits of $61.7 million in fiscal 2015, $25.1 million for fiscal 2014 and $27.2 million for fiscal 2013. | |||||||||||||||||||||
Outstanding Stock Options | |||||||||||||||||||||
As of February 28, 2015 | |||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Weighted | |||||||||||||||||||||
Average | Weighted | Weighted | |||||||||||||||||||
Remaining | Average | Average | |||||||||||||||||||
(Shares in thousands) | Number of | Contractual | Exercise | Number of | Exercise | ||||||||||||||||
Range of Exercise Prices | Shares | Life (Years) | Price | Shares | Price | ||||||||||||||||
$ | 11.43 | - | $ | 14.49 | 458 | 1.0 | $ | 12.03 | 458 | $ | 12.03 | ||||||||||
$ | 19.82 | - | $ | 30.24 | 723 | 2.4 | $ | 25.46 | 699 | $ | 25.30 | ||||||||||
$ | 31.76 | 1,732 | 4.1 | $ | 31.76 | 903 | $ | 31.76 | |||||||||||||
$ | 32.05 | - | $ | 33.11 | 1,356 | 3.1 | $ | 32.70 | 1,036 | $ | 32.70 | ||||||||||
$ | 42.68 | 1,411 | 5.1 | $ | 42.68 | 399 | $ | 42.68 | |||||||||||||
$ | 44.96 | - | $ | 67.82 | 1,965 | 6.1 | $ | 45.12 | 102 | $ | 45.47 | ||||||||||
Total | 7,645 | 4.3 | $ | 35.59 | 3,597 | $ | 29.86 | ||||||||||||||
For stock options, the fair value of each award is estimated as of the date of grant using a binomial valuation model. In computing the value of the option, the binomial model considers characteristics of fair-value option pricing that are not available for consideration under a closed-form valuation model (for example, the Black-Scholes model), such as the contractual term of the option, the probability that the option will be exercised prior to the end of its contractual life and the probability of termination or retirement of the option holder. For this reason, we believe that the binomial model provides a fair value that is more representative of actual experience and future expected experience than the value calculated using a closed-form model. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by the recipients of share-based awards. | |||||||||||||||||||||
The weighted average fair value per share at the date of grant for options granted was $13.28 in fiscal 2015, $15.59 in fiscal 2014 and $12.67 in fiscal 2013. The unrecognized compensation costs related to nonvested options totaled $31.6 million as of February 28, 2015. These costs are expected to be recognized on a straight-line basis over a weighted average period of 2.1 years. | |||||||||||||||||||||
Assumptions Used to Estimate Option Values | |||||||||||||||||||||
Years Ended February 28 | |||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
Dividend yield | 0.0 | % | 0.0 | % | 0.0 | % | |||||||||||||||
Expected volatility factor (1) | 25.2 | % | - | 32.7 | % | 27.9 | % | - | 46.8 | % | 31.1 | % | - | 51.4 | % | ||||||
Weighted average expected volatility | 31.8 | % | 44.7 | % | 49.4 | % | |||||||||||||||
Risk-free interest rate (2) | 0.01 | % | - | 2.7 | % | 0.02 | % | - | 2.6 | % | 0.02 | % | - | 2.0 | % | ||||||
Expected term (in years) (3) | 4.7 | 4.7 | 4.7 | ||||||||||||||||||
(1)Measured using historical daily price changes of our stock for a period corresponding to the term of the options and the implied volatility derived from the market prices of traded options on our stock. | |||||||||||||||||||||
(2)Based on the U.S. Treasury yield curve at the time of grant. | |||||||||||||||||||||
(3)Represents the estimated number of years that options will be outstanding prior to exercise. | |||||||||||||||||||||
Cash-Settled Restricted Stock Unit Activity | |||||||||||||||||||||
Weighted | |||||||||||||||||||||
Average | |||||||||||||||||||||
Number of | Grant Date | ||||||||||||||||||||
(Units in thousands) | Units | Fair Value | |||||||||||||||||||
Outstanding as of February 28, 2014 | 1,531 | $ | 35.68 | ||||||||||||||||||
Stock units granted | 588 | $ | 44.96 | ||||||||||||||||||
Stock units vested and converted | -474 | $ | 32.93 | ||||||||||||||||||
Stock units cancelled | -115 | $ | 39.55 | ||||||||||||||||||
Outstanding as of February 28, 2015 | 1,530 | $ | 39.81 | ||||||||||||||||||
We granted 587,990 RSUs in fiscal 2015, 541,819 RSUs in fiscal 2014 and 644,232 RSUs in fiscal 2013. The initial fair market value per RSU at the date of grant was $44.96 in fiscal 2015, $42.68 in fiscal 2014 and $31.76 in fiscal 2013. The RSUs are cash-settled upon vesting. During fiscal 2015, we paid $21.8 million (before payroll tax withholdings) to RSU holders upon the vesting of RSUs, and we realized tax benefits of $8.8 million. | |||||||||||||||||||||
Expected Cash Settlement Range Upon Restricted Stock Unit Vesting | |||||||||||||||||||||
As of February 28, 2015 | |||||||||||||||||||||
(In thousands) | Minimum (1) | Maximum (1) | |||||||||||||||||||
Fiscal 2016 | $ | 12,180 | $ | 32,479 | |||||||||||||||||
Fiscal 2017 | 13,950 | 37,199 | |||||||||||||||||||
Fiscal 2018 | 16,137 | 43,033 | |||||||||||||||||||
Total expected cash settlements | $ | 42,267 | $ | 112,711 | |||||||||||||||||
(1)Net of estimated forfeitures. | |||||||||||||||||||||
Stock-Settled Restricted Stock Unit Activity | |||||||||||||||||||||
Weighted | |||||||||||||||||||||
Average | |||||||||||||||||||||
Number of | Grant Date | ||||||||||||||||||||
(Units in thousands) | Units | Fair Value | |||||||||||||||||||
Outstanding as of February 28, 2014 | 852 | $ | 45.26 | ||||||||||||||||||
Stock units granted | 250 | $ | 55.48 | ||||||||||||||||||
Stock units vested and converted | -302 | $ | 45.69 | ||||||||||||||||||
Stock units cancelled | -26 | $ | 48.10 | ||||||||||||||||||
Outstanding as of February 28, 2015 | 774 | $ | 48.30 | ||||||||||||||||||
We granted 249,801 MSUs in fiscal 2015, 237,660 MSUs in fiscal 2014 and 348,551 MSUs in fiscal 2013. The weighted average fair value per MSU at the date of grant was $55.48 in fiscal 2015, $52.02 in fiscal 2014 and $40.33 in fiscal 2013. The fair values were determined using a Monte-Carlo simulation and were based on the expected market price of our common stock on the vesting date and the expected number of converted common shares. We realized related tax benefits of $8.1 million during fiscal 2015, from the vesting of market stock units. The unrecognized compensation costs related to nonvested MSUs totaled $13.5 million as of February 28, 2015. These costs are expected to be recognized on a straight-line basis over a weighted average period of 1.0 years. | |||||||||||||||||||||
(E) Employee Stock Purchase Plan | |||||||||||||||||||||
We sponsor an employee stock purchase plan for all associates meeting certain eligibility criteria. Associate contributions are limited to 10% of eligible compensation, up to a maximum of $7,500 per year. For each $1.00 contributed to the plan by associates, we match $0.15. We have authorized up to 8,000,000 shares of common stock for the employee stock purchase plan. Shares are acquired through open-market purchases. | |||||||||||||||||||||
As of February 28, 2015, a total of 3,540,283 shares remained available under the plan. Shares purchased in the open market on behalf of associates totaled 184,390 during fiscal 2015, 188,797 during fiscal 2014 and 251,667 during fiscal 2013. The average price per share for purchases under the plan was $52.18 in fiscal 2015, $47.35 in fiscal 2014 and $32.05 in fiscal 2013. The total costs for matching contributions are included in share-based compensation expense. | |||||||||||||||||||||
Net_Earnings_Per_Share
Net Earnings Per Share | 12 Months Ended | |||||||||||
Feb. 28, 2015 | ||||||||||||
Net Earnings Per Share [Abstract] | ||||||||||||
Net Earnings Per Share | 13.Net Earnings Per Share | |||||||||||
Basic and Dilutive Net Earnings Per Share Reconciliations | ||||||||||||
Years Ended February 28 | ||||||||||||
(In thousands except per share data) | 2015 | 2014 | 2013 | |||||||||
Net earnings | $ | 597,358 | $ | 492,586 | $ | 434,284 | ||||||
Weighted average common shares outstanding | 215,617 | 223,589 | 228,095 | |||||||||
Dilutive potential common shares: | ||||||||||||
Stock options | 2,369 | 3,255 | 3,161 | |||||||||
Stock-settled restricted stock units | 705 | 740 | 567 | |||||||||
Weighted average common shares and dilutive | ||||||||||||
potential common shares | 218,691 | 227,584 | 231,823 | |||||||||
Basic net earnings per share | $ | 2.77 | $ | 2.20 | $ | 1.90 | ||||||
Diluted net earnings per share | $ | 2.73 | $ | 2.16 | $ | 1.87 | ||||||
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 fiscal 2015, fiscal 2014 and fiscal 2013, options to purchase 1,409,809 shares, 1,231,382 shares and 3,877,165 shares of common stock, respectively, were not included. | ||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | |||||||||||||
Accumulated Other Comprehensive Loss | 14.Accumulated Other Comprehensive Loss | ||||||||||||
Changes in Accumulated Other Comprehensive Loss By Component | |||||||||||||
Total | |||||||||||||
Net | Accumulated | ||||||||||||
Unrecognized | Net | Other | |||||||||||
Actuarial | Unrecognized | Comprehensive | |||||||||||
(In thousands, net of income taxes) | Losses | Hedge Losses | Loss | ||||||||||
Balance as of February 29, 2012 | $ | -39,774 | $ | -22,685 | $ | -62,459 | |||||||
Other comprehensive (loss) income before reclassifications | -10,456 | 4,485 | -5,971 | ||||||||||
Amounts reclassified from accumulated other | |||||||||||||
comprehensive loss | 751 | 7,871 | 8,622 | ||||||||||
Other comprehensive (loss) income | -9,705 | 12,356 | 2,651 | ||||||||||
Balance as of February 28, 2013 | -49,479 | -10,329 | -59,808 | ||||||||||
Other comprehensive income (loss) before reclassifications | 9,713 | -3,216 | 6,497 | ||||||||||
Amounts reclassified from accumulated other | |||||||||||||
comprehensive loss | 1,051 | 5,989 | 7,040 | ||||||||||
Other comprehensive income | 10,764 | 2,773 | 13,537 | ||||||||||
Balance as of February 28, 2014 | -38,715 | -7,556 | -46,271 | ||||||||||
Other comprehensive (loss) income before reclassifications | -21,358 | -3,535 | -24,893 | ||||||||||
Amounts reclassified from accumulated other | |||||||||||||
comprehensive loss | 853 | 4,920 | 5,773 | ||||||||||
Other comprehensive (loss) income | -20,505 | 1,385 | -19,120 | ||||||||||
Balance as of February 28, 2015 | $ | -59,220 | $ | -6,171 | $ | -65,391 | |||||||
Changes In and Reclassifications Out of Accumulated Other Comprehensive Loss | |||||||||||||
Years Ended February 28 | |||||||||||||
(In thousands) | 2015 | 2014 | 2013 | ||||||||||
Retirement Benefit Plans (Note 10): | |||||||||||||
Actuarial (loss) gain arising during the year | $ | -34,126 | $ | 15,465 | $ | -16,694 | |||||||
Tax benefit (expense) | 12,768 | -5,752 | 6,238 | ||||||||||
Actuarial (loss) gain arising during the year, | |||||||||||||
net of tax | -21,358 | 9,713 | -10,456 | ||||||||||
Actuarial loss amortization reclassifications | |||||||||||||
in net pension expense: | |||||||||||||
Cost of sales | 558 | 669 | 483 | ||||||||||
CarMax Auto Finance income | 31 | 38 | 28 | ||||||||||
Selling, general and administrative expenses | 772 | 967 | 689 | ||||||||||
Total amortization reclassifications recognized | |||||||||||||
in net pension expense | 1,361 | 1,674 | 1,200 | ||||||||||
Tax expense | -508 | -623 | -449 | ||||||||||
Amortization reclassifications recognized in net | |||||||||||||
pension expense, net of tax | 853 | 1,051 | 751 | ||||||||||
Net change in retirement benefit plan unrecognized | |||||||||||||
actuarial losses, net of tax | -20,505 | 10,764 | -9,705 | ||||||||||
Cash Flow Hedges (Note 5): | |||||||||||||
Effective portion of changes in fair value | -5,847 | -5,286 | -6,691 | ||||||||||
Tax benefit (1) | 2,312 | 2,070 | 11,176 | ||||||||||
Effective portion of changes in fair value, net of tax | -3,535 | -3,216 | 4,485 | ||||||||||
Reclassifications to CarMax Auto Finance income | 8,118 | 9,872 | 12,981 | ||||||||||
Tax expense | -3,198 | -3,883 | -5,110 | ||||||||||
Reclassification of hedge losses, net of tax | 4,920 | 5,989 | 7,871 | ||||||||||
Net change in cash flow hedge unrecognized losses, | |||||||||||||
net of tax | 1,385 | 2,773 | 12,356 | ||||||||||
Total other comprehensive (loss) income, net of tax | $ | -19,120 | $ | 13,537 | $ | 2,651 | |||||||
(1) The year ended February 28, 2013, includes a tax benefit adjustment of $8,518 related to prior years. | |||||||||||||
Changes in the funded status of our retirement plans and the effective portion of 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 $39.0 million as of February 28, 2015, and $27.7 million as of February 28, 2014. | |||||||||||||
Lease_Commitments
Lease Commitments | 12 Months Ended | |||||||||||
Feb. 28, 2015 | ||||||||||||
Lease Commitments [Abstract] | ||||||||||||
Lease Commitments | 15.Lease Commitments | |||||||||||
Our leases primarily consist of land or land and building leases related to CarMax store locations. Our lease obligations are based upon contractual minimum rates. Most leases provide that we pay taxes, maintenance, insurance and operating expenses applicable to the premises. The initial term of most real property leases will expire within the next 20 years; however, most of the leases have options providing for renewal periods of 5 to 20 years at terms similar to the initial terms. For finance and capital leases, a portion of the periodic lease payments is recognized as interest expense and the remainder reduces the obligations. For operating leases, rent is recognized on a straight-line basis over the lease term, including scheduled rent increases and rent holidays. Rent expense for all operating leases was $44.6 million in fiscal 2015, $43.6 million in fiscal 2014 and $42.8 million in fiscal 2013. See Note 11 for additional information on finance and capital lease obligations. | ||||||||||||
Future Minimum Lease Obligations | ||||||||||||
As of February 28, 2015 | ||||||||||||
Capital | Finance | Operating Lease | ||||||||||
(In thousands) | Lease (1) | Leases (1) | Commitments (1) | |||||||||
Fiscal 2016 | $ | 333 | $ | 48,217 | $ | 43,156 | ||||||
Fiscal 2017 | 354 | 42,587 | 41,543 | |||||||||
Fiscal 2018 | 354 | 36,040 | 39,510 | |||||||||
Fiscal 2019 | 354 | 33,526 | 38,743 | |||||||||
Fiscal 2020 | 354 | 32,320 | 36,829 | |||||||||
Fiscal 2021 and thereafter | 4,810 | 152,642 | 242,892 | |||||||||
Total minimum lease payments | 6,559 | 345,332 | 442,673 | |||||||||
Less amounts representing interest | -3,753 | |||||||||||
Present value of net minimum lease payments | $ | 2,806 | ||||||||||
-1 | Excludes taxes, insurance and other costs payable directly by us. These costs vary from year to year and are incurred in | |||||||||||
the ordinary course of business. | ||||||||||||
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended |
Feb. 28, 2015 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | |
16.Commitments and Contingencies | |
(A) Litigation | |
On April 2, 2008, Mr. John Fowler filed a putative class action lawsuit against CarMax Auto Superstores California, LLC and CarMax Auto Superstores West Coast, Inc. in the Superior Court of California, County of Los Angeles. Subsequently, two other lawsuits, Leena Areso et al. v. CarMax Auto Superstores California, LLC and Justin Weaver v. CarMax Auto Superstores California, LLC, were consolidated as part of the Fowler case. The allegations in the consolidated case involved: (1) failure to provide meal and rest breaks or compensation in lieu thereof; (2) failure to pay wages of terminated or resigned employees related to meal and rest breaks and overtime; (3) failure to pay overtime; (4) failure to comply with itemized employee wage statement provisions; (5) unfair competition; and (6) California’s Labor Code Private Attorney General Act. The putative class consisted of sales consultants, sales managers, and other hourly employees who worked for the company in California from April 2, 2004, to the present. On May 12, 2009, the court dismissed all of the class claims with respect to the sales manager putative class. On June 16, 2009, the court dismissed all claims related to the failure to comply with the itemized employee wage statement provisions. The court also granted CarMax's motion for summary adjudication with regard to CarMax's alleged failure to pay overtime to the sales consultant putative class. | |
The claims currently remaining in the lawsuit regarding the sales consultant putative class are: (1) failure to provide meal and rest breaks or compensation in lieu thereof; (2) failure to pay wages of terminated or resigned employees related to meal and rest breaks; (3) unfair competition; and (4) California’s Labor Code Private Attorney General Act. On November 21, 2011, the court granted CarMax’s motion to compel the plaintiffs’ remaining claims into arbitration on an individual basis. The plaintiffs appealed the court’s ruling and on March 26, 2013, the California Court of Appeal reversed the trial court's order granting CarMax's motion to compel arbitration. On October 8, 2013, CarMax filed a petition for a writ of certiorari seeking review in the United States Supreme Court. On February 24, 2014, the United States Supreme Court granted CarMax's petition for certiorari, vacated the California Court of Appeal decision and remanded the case to the California Court of Appeal for further consideration. The California Court of Appeal determined that Plaintiffs' Labor Code Private Attorney General Act claim is not subject to arbitration, but the remaining claims are subject to arbitration on an individual basis. CarMax appealed this decision on March 9, 2015 by filing a petition for review with the California Supreme Court. The Fowler lawsuit seeks compensatory and special damages, wages, interest, civil and statutory penalties, restitution, injunctive relief and the recovery of attorneys’ fees. We are unable to make a reasonable estimate of the amount or range of loss that could result from an unfavorable outcome in this matter. | |
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. | |
(B) Settlement Gain | |
The Company is a class member in a consolidated and settled class action lawsuit (In Re Toyota Motor Corp. Unintended Acceleration Marketing, Sales Practices, and Products Liability Litig., Case No. 10-2151 (C.D. Cal.), consolidated as of April 9, 2010) against Toyota Motor Corp. and Toyota Motor Sales, USA, Inc. (collectively, “Toyota”) related to the economic loss associated with certain Toyota vehicles equipped with electronic throttle controls systems and the potential unintended acceleration of these vehicles. On July 9, 2014 we received $20.9 million in the settlement of this matter and recorded the gain at the time of receipt. | |
(C) 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 at least a 30-day 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 $6.2 million as of February 28, 2015, and $5.7 million as of February 28, 2014, and is included in accrued expenses and other current liabilities. | |
At various times we may have certain purchase obligations that are enforceable and legally binding primarily related to real estate purchases and third-party outsourcing services. As of February 28, 2015 we have material purchase obligations of $98.3 million, of which $68.8 million are expected to be fulfilled in fiscal 2016. | |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Selected Quarterly Financial Data [Abstract] | |||||||||||||||||
Selected Quarterly Financial Data | 17.Selected Quarterly Financial Data (Unaudited) | ||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Fiscal Year | |||||||||||||
(In thousands, except per share data) | 2015 | 2015 | 2015 | 2015 (1) | 2015 | ||||||||||||
Net sales and operating revenues | $ | 3,750,196 | $ | 3,599,194 | $ | 3,405,234 | $ | 3,514,092 | $ | 14,268,716 | |||||||
Gross profit | $ | 501,731 | $ | 463,339 | $ | 446,620 | $ | 475,837 | $ | 1,887,527 | |||||||
CarMax Auto Finance income | $ | 94,615 | $ | 92,574 | $ | 89,722 | $ | 90,383 | $ | 367,294 | |||||||
Selling, general and administrative | |||||||||||||||||
expenses | $ | 313,446 | $ | 297,638 | $ | 316,632 | $ | 330,009 | $ | 1,257,725 | |||||||
Net earnings | $ | 169,653 | $ | 154,518 | $ | 130,049 | $ | 143,138 | $ | 597,358 | |||||||
Net earnings per share: | |||||||||||||||||
Basic | $ | 0.77 | $ | 0.71 | $ | 0.61 | $ | 0.68 | $ | 2.77 | |||||||
Diluted | $ | 0.76 | $ | 0.70 | $ | 0.60 | $ | 0.67 | $ | 2.73 | |||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Fiscal Year | |||||||||||||
(In thousands, except per share data) | 2014 | 2014 | 2014 | 2014 (2) | 2014 (2) | ||||||||||||
Net sales and operating revenues | $ | 3,311,057 | $ | 3,245,552 | $ | 2,941,407 | $ | 3,076,283 | $ | 12,574,299 | |||||||
Gross profit | $ | 448,096 | $ | 434,743 | $ | 381,721 | $ | 384,141 | $ | 1,648,701 | |||||||
CarMax Auto Finance income | $ | 87,019 | $ | 84,422 | $ | 83,905 | $ | 80,821 | $ | 336,167 | |||||||
Selling, general and administrative | |||||||||||||||||
expenses | $ | 290,189 | $ | 283,206 | $ | 284,366 | $ | 297,454 | $ | 1,155,215 | |||||||
Net earnings | $ | 146,651 | $ | 140,274 | $ | 106,452 | $ | 99,209 | $ | 492,586 | |||||||
Net earnings per share: | |||||||||||||||||
Basic | $ | 0.65 | $ | 0.63 | $ | 0.48 | $ | 0.45 | $ | 2.20 | |||||||
Diluted | $ | 0.64 | $ | 0.62 | $ | 0.47 | $ | 0.44 | $ | 2.16 | |||||||
-1 | During the fourth quarter of fiscal 2015, we capitalized $8.9 million of interest expense, of which $6.9 million, or $0.02 per share, related to earlier quarters in fiscal 2015. | ||||||||||||||||
-2 | As disclosed in Note 8, during the fourth quarter of fiscal 2014, we corrected our accounting related to cancellation reserves for our ESP and GAP products. The correction of the out of period error consisted of $0.02 per share pertaining to earlier quarters in fiscal 2014 and $0.05 per share pertaining to fiscal 2013 and fiscal 2012. | ||||||||||||||||
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended | ||||
Feb. 28, 2015 | |||||
Summary Of Significant Accounting Policies [Abstract] | |||||
Basis Of Presentation And Use Of Estimates | (A) Basis of Presentation and Use of Estimates | ||||
The consolidated financial statements include the accounts of CarMax and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“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. Certain prior year amounts have been reclassified to conform to the current year’s presentation. Amounts and percentages may not total due to rounding. | |||||
Cash And Cash Equivalents | (B) Cash and Cash Equivalents | ||||
Cash equivalents of approximately $48,000 as of February 28, 2015, and $607.0 million as of February 28, 2014, consisted of highly liquid investments with original maturities of three months or less. | |||||
Restricted Cash From Collections On Auto Loan Receivables | (C) Restricted Cash from Collections on Auto Loan Receivables | ||||
Cash equivalents totaling $294.1 million as of February 28, 2015, and $259.3 million as of February 28, 2014, consisted of collections of principal, interest and fee payments on securitized auto loan receivables that are restricted for payment to the securitization investors pursuant to the applicable securitization agreements. | |||||
Marketable Securities | (D) Marketable Securities | ||||
The Company classifies its marketable securities as trading. These securities consisted primarily of mutual funds reported at fair value with unrealized gains and losses reflected as a component of other expense. Marketable securities as of February 28, 2015 and 2014 pertain to the Company's restricted investments held in a rabbi trust. Proceeds from the sales of marketable securities were $0.7 million and $0.5 million in fiscal 2015 and 2014, respectively. Realized and unrealized gains of $0.2 million and $0 were recognized during fiscal 2015 and fiscal 2014, respectively. | |||||
Accounts Receivable, Net | (E) Accounts Receivable, Net | ||||
Accounts receivable, net of an allowance for doubtful accounts, includes certain amounts due from third-party finance providers and customers and other miscellaneous receivables. The allowance for doubtful accounts is estimated based on historical experience and trends. | |||||
Securitizations | (F) Securitizations | ||||
We maintain a revolving securitization program composed of two warehouse facilities (“warehouse facilities”) that we use to fund auto loan receivables originated by CAF until we elect to fund them through a term securitization or alternative funding arrangement. We sell the auto loan receivables to one of two wholly owned, bankruptcy-remote, special purpose entities that transfer an undivided percentage ownership interest in the receivables, but not the receivables themselves, to entities formed by third-party investors. These entities issue asset-backed commercial paper or utilize other funding sources supported by the transferred receivables, and the proceeds are used to finance the securitized receivables. | |||||
We typically use term securitizations to provide long-term funding for most of the auto loan receivables initially securitized through the warehouse facilities. In these transactions, a pool of auto loan receivables is sold to a bankruptcy-remote, special purpose entity that, in turn, transfers the receivables to a special purpose securitization trust. The securitization trust issues asset-backed securities, secured or otherwise supported by the transferred receivables, and the proceeds from the sale of the asset-backed securities are used to finance the securitized receivables. | |||||
We are required to evaluate term securitization trusts for consolidation. In our capacity as servicer, we have the power to direct the activities of the trusts that most significantly impact the economic performance of the trusts. In addition, we have the obligation to absorb losses (subject to limitations) and the rights to receive any returns of the trusts, which could be significant. Accordingly, we are the primary beneficiary of the trusts and are required to consolidate them. | |||||
We recognize transfers of auto loan receivables into the warehouse facilities and term securitizations (“securitization vehicles”) as secured borrowings, which result in recording the auto loan receivables and the related non-recourse notes payable on our consolidated balance sheets. | |||||
The securitized receivables can only be used as collateral to settle obligations of the securitization vehicles. The securitization vehicles and investors have no recourse to our assets beyond the securitized receivables, the amounts on deposit in reserve accounts and the restricted cash from collections on auto loan receivables. We have not provided financial or other support to the securitization vehicles that was not previously contractually required, and there are no additional arrangements, guarantees or other commitments that could require us to provide financial support to the securitization vehicles. | |||||
See Notes 4 and 11 for additional information on auto loan receivables and non-recourse notes payable. | |||||
Fair Value Of Financial Instruments | (G) Fair Value of Financial Instruments | ||||
Due to the short-term nature and/or variable rates associated with these financial instruments, the carrying value of our cash and cash equivalents, restricted cash, accounts receivable, money market securities, accounts payable, short-term debt and long-term debt approximates fair value. Our derivative instruments and mutual funds are recorded at fair value. Auto loan receivables are presented net of an allowance for estimated loan losses. See Note 6 for additional information on fair value measurements. | |||||
Inventory | (H) Inventory | ||||
Inventory is primarily comprised of vehicles held for sale or currently undergoing reconditioning and is stated at the lower of cost or market. Vehicle inventory cost is determined by specific identification. Parts and labor used to recondition vehicles, as well as transportation and other incremental expenses associated with acquiring and reconditioning vehicles, are included in inventory. | |||||
Auto Loan Receivables, Net | (I) Auto Loan Receivables, Net | ||||
Auto loan receivables include amounts due from customers related to retail vehicle sales financed through CAF. The receivables are presented net of an allowance for estimated loan losses. The allowance for loan losses represents an estimate of the amount of net losses inherent in our portfolio of managed receivables as of the applicable reporting date and anticipated to occur during the following 12 months. The allowance is primarily based on the credit quality of the underlying receivables, historical loss trends and forecasted forward loss curves. We also take into account recent trends in delinquencies and losses, recovery rates and the economic environment. The provision for loan losses is the periodic expense of maintaining an adequate allowance. | |||||
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. See Note 4 for additional information on auto loan receivables. | |||||
Interest income and expenses related to auto loans are included in CAF income. Interest income on auto loan receivables is recognized when earned based on contractual loan terms. All loans continue to accrue interest until repayment or charge-off. Direct costs associated with loan originations are not considered material, and thus, are expensed as incurred. See Note 3 for additional information on CAF income. | |||||
Property And Equipment | (J) Property and Equipment | ||||
Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the shorter of the asset’s estimated useful life or the lease term, if applicable. Property held under capital lease is stated at the lesser of the present value of the future minimum lease payments at the inception of the lease or fair value. Amortization of capital lease assets is computed on a straight-line basis over the shorter of the initial lease term or the estimated useful life of the asset and is included in depreciation expense. Costs incurred during new store construction are capitalized as construction-in-progress and reclassified to the appropriate fixed asset categories when the store is completed. | |||||
Estimated Useful Lives | |||||
Life | |||||
Buildings | 25 years | ||||
Capital lease | 20 years | ||||
Leasehold improvements | 15 years | ||||
Furniture, fixtures and equipment | 3 – 15 years | ||||
We review long-lived assets for impairment when events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. We recognize impairment when the sum of undiscounted estimated future cash flows expected to result from the use of the asset is less than the carrying value of the asset. See Note 7 for additional information on property and equipment. | |||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets. Goodwill and other intangibles had a carrying value of $10.1 million as of February 28, 2015 and February 28, 2014. We review goodwill and intangible assets for impairment annually or when circumstances indicate the carrying amount may not be recoverable. No impairment of goodwill or intangible assets resulted from our annual impairment tests in fiscal 2015, 2014 or 2013. | ||||
Other Assets, Restricted | Restricted Cash on Deposit in Reserve Accounts. The restricted cash on deposit in reserve accounts is for the benefit of holders of non-recourse notes payable, and these funds are not expected to be available to the company or its creditors. In the event that the cash generated by the securitized receivables in a given period was insufficient to pay the interest, principal and other required payments, the balances on deposit in the reserve accounts would be used to pay those amounts. Restricted cash on deposit in reserve accounts is invested in money market securities and was $42.7 million as of February 28, 2015, and $32.5 million as of February 28, 2014. | ||||
Restricted Investments. Restricted investments includes money market securities primarily held to satisfy certain insurance program requirements, as well as mutual funds held in a rabbi trust established to fund informally our executive deferred compensation plan. Restricted investments totaled $52.4 million as of February 28, 2015 and $40.2 million as of February 28, 2014. | |||||
Finance Lease Obligations | (L) Finance Lease Obligations | ||||
We generally account for sale-leaseback transactions as financings. Accordingly, we record certain of the assets subject to these transactions on our consolidated balance sheets in property and equipment and the related sales proceeds as finance lease obligations. Depreciation is recognized on the assets over their estimated useful lives, generally 25 years. Payments on the leases are recognized as interest expense and a reduction of the obligations. In the event the leases are modified or extended beyond the original lease term, the related finance lease obligation is increased based on the present value of the revised future minimum lease payments on the date of the modification, with a corresponding increase to the net carrying amount of the assets subject to these transactions. See Notes 11 and 15 for additional information on finance lease obligations. | |||||
Other Accrued Expenses | (M) Accrued Expenses | ||||
As of February 28, 2015 and February 28, 2014, accrued expenses and other current liabilities included accrued compensation and benefits of $148.4 million and $120.7 million, respectively; loss reserves for general liability and workers’ compensation insurance of $36.7 million and $29.7 million, respectively; and the current portion of cancellation reserves. See Note 8 for additional information on cancellation reserves. | |||||
Defined Benefit Plan Obligations | (N) Defined Benefit Plan Obligations | ||||
The recognized funded status of defined benefit retirement plan obligations is included both in accrued expenses and other current liabilities and in other liabilities. The current portion represents benefits expected to be paid from our benefit restoration plan over the next 12 months. The defined benefit retirement plan obligations are determined by independent actuaries using a number of assumptions provided by CarMax. Key assumptions used in measuring the plan obligations include the discount rate, rate of return on plan assets and mortality rate. See Note 10 for additional information on our benefit plans. | |||||
Insurance Liabilities | (O) Insurance Liabilities | ||||
Insurance liabilities are included in accrued expenses and other current liabilities. We use a combination of insurance and self-insurance for a number of risks including workers’ compensation, general liability and employee-related health care costs, a portion of which is paid by associates. Estimated insurance liabilities are determined by considering historical claims experience, demographic factors and other actuarial assumptions. | |||||
Revenue Recognition | |||||
(P) Revenue Recognition | |||||
We recognize revenue when the earnings process is complete, generally either at the time of sale to a customer or upon delivery to a customer. As part of our customer service strategy, we guarantee the retail vehicles we sell with a 5‑day, money-back guarantee. We record a reserve for estimated returns based on historical experience and trends. | |||||
We also sell ESPs and GAP on behalf of unrelated third parties, who are the primary obligors, to customers who purchase a 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 commission revenue at the time of sale, net of a reserve for estimated contract cancellations. Periodically, we may receive additional commissions based upon the level of underwriting profits of the third parties who administer the products. These additional commissions are recognized as revenue when received. 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 commissions 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 other current liabilities with the remaining amount recognized in other liabilities. See Note 8 for additional information on cancellation reserves. | |||||
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. | |||||
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. | |||||
Cost Of Sales | |||||
(Q) Cost of Sales | |||||
Cost of sales includes the cost to acquire vehicles and the reconditioning and transportation costs associated with preparing the vehicles for resale. It also includes payroll, fringe benefits and parts and repair costs associated with reconditioning and vehicle repair services. The gross profit earned by our service department for used vehicle reconditioning service is a reduction of cost of sales. We maintain a reserve to eliminate the internal profit on vehicles that have not been sold. | |||||
Selling, General And Administrative Expenses | |||||
(R) Selling, General and Administrative Expenses | |||||
Selling, general and administrative (“SG&A”) expenses primarily include compensation and benefits, other than payroll related to reconditioning and vehicle repair services; depreciation, rent and other occupancy costs; advertising; and IT expenses, insurance, bad debt, travel, preopening and relocation costs, charitable contributions and other administrative expenses. | |||||
Advertising Expenses | |||||
(S) Advertising Expenses | |||||
Advertising costs are expensed as incurred and substantially all are included in SG&A expenses. Total advertising expenses were $124.3 million in fiscal 2015, $114.6 million in fiscal 2014 and $108.2 million in fiscal 2013. | |||||
Store Opening Expenses | |||||
(T) Store Opening Expenses | |||||
Costs related to store openings, including preopening costs, are expensed as incurred and are included in SG&A expenses. | |||||
Share-Based Compensation | |||||
(U) Share-Based Compensation | |||||
Share-based compensation represents the cost related to share-based awards granted to employees and non-employee directors. We measure share-based compensation cost at the grant date, based on the estimated fair value of the award, and we recognize the cost on a straight-line basis (net of estimated forfeitures) over the grantee’s requisite service period, which is generally the vesting period of the award. We estimate the fair value of stock options using a binomial valuation model. Key assumptions used in estimating the fair value of options are dividend yield, expected volatility, risk-free interest rate and expected term. The fair value of restricted stock is based on the volume-weighted average market value on the date of the grant. The fair value of stock-settled restricted stock units is determined using a Monte-Carlo simulation based on the expected market price of our common stock on the vesting date and the expected number of converted common shares. Cash-settled restricted stock units are liability awards with fair value measurement based on the market price of CarMax common stock as of the end of each reporting period. Share-based compensation expense is recorded in either cost of sales, CAF income or SG&A expenses based on the recipients’ respective function. | |||||
We record deferred tax assets for awards that result in deductions on our income tax returns, based on the amount of compensation expense recognized and the statutory tax rate in the jurisdiction in which we will receive a deduction. Differences between the deferred tax assets recognized for financial reporting purposes and the actual tax deduction reported on the income tax return are recorded in capital in excess of par value (if the tax deduction exceeds the deferred tax asset) or in the consolidated statements of earnings (if the deferred tax asset exceeds the tax deduction and no capital in excess of par value exists from previous awards). See Note 12 for additional information on stock-based compensation. | |||||
Derivative Instruments And Hedging Activities | |||||
(V) Derivative Instruments and Hedging Activities | |||||
We enter into derivative instruments to manage exposures that arise from business activities that result in the future known receipt or payment of uncertain cash amounts, the values of which are impacted by interest rates. We recognize the derivatives at fair value as either current assets or current liabilities on the consolidated balance sheets, and where applicable, such contracts covered by master netting agreements are reported net. Gross positive fair values are netted with gross negative fair values by counterparty. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. We may enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting may not apply or we do not elect to apply hedge accounting. See Note 5 for additional information on derivative instruments and hedging activities. | |||||
Income Taxes | |||||
(W) Income Taxes | |||||
We file a consolidated federal income tax return for a majority of our subsidiaries. Certain subsidiaries are required to file separate partnership or corporate federal income tax returns. Deferred income taxes reflect the impact of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for income tax purposes, measured by applying currently enacted tax laws. A deferred tax asset is recognized if it is more likely than not that a benefit will be realized. Changes in tax laws and tax rates are reflected in the income tax provision in the period in which the changes are enacted. | |||||
We recognize tax liabilities when, despite our belief that our tax return positions are supportable, we believe that certain positions may not be fully sustained upon review by tax authorities. Benefits from tax positions are measured at the highest tax benefit that is greater than 50% likely of being realized upon settlement. The current portion of these tax liabilities is included in accrued income taxes and any noncurrent portion is included in other liabilities. To the extent that the final tax outcome of these matters is different from the amounts recorded, the differences impact income tax expense in the period in which the determination is made. Interest and penalties related to income tax matters are included in SG&A expenses. See Note 9 for additional information on income taxes. | |||||
Net Earnings Per Share | |||||
(X) 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 the 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. See Note 13 for additional information on net earnings per share. | |||||
Recent Accounting Pronouncements | (Y) Recent Accounting Pronouncements | ||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting pronouncement related to liabilities (FASB ASU 2013-04), which amends the guidance in former FASB ASC Topic 405. The amendments provide guidance on the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements, including debt arrangements, other contractual obligations, and settled litigation and judicial rulings. We adopted this pronouncement for our fiscal year beginning March 1, 2014, and there was no effect on our consolidated financial statements. | |||||
In July 2013, the FASB issued an accounting pronouncement (FASB ASU 2013-11) related to income taxes (FASB ASC Topic 740), which provides guidance regarding the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar loss or a tax credit carryforward exists. Under certain circumstances, unrecognized tax benefits should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. We adopted this pronouncement for our fiscal year beginning March 1, 2014, and there was no effect on our consolidated financial statements. | |||||
In April 2014, the FASB issued an accounting pronouncement (FASB ASU 2014-8) related to discontinued operations (FASB ASC Topic 205). The standard raises the threshold for disposals to qualify as a discontinued operation by focusing on strategic shifts that have or will have a major effect on an entity’s operations and financial results. The standard also requires additional disclosures for discontinued operations and new disclosures for individually material disposal transactions that do not meet the definition of discontinued operations. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. We will adopt this pronouncement for our fiscal year beginning March 1, 2015. We do not expect this pronouncement to have a material effect on our consolidated financial statements. | |||||
In May 2014, the FASB issued an accounting pronouncement related to revenue recognition (FASB ASC Topic 606), which amends the guidance in former ASC Topic 605, Revenue Recognition, and provides a single, comprehensive revenue recognition model for all contracts with customers. This standard contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. The entity will recognize revenue to reflect the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is not permitted. We will adopt the provisions of ASC Topic 606 for our fiscal year beginning March 1, 2017, and are currently evaluating the effect on our consolidated financial statements. | |||||
In January 2015, the FASB issued an accounting pronouncement (FASB ASU 2015-1) related to the disclosure requirements for extraordinary items (FASB ASC Subtopic 225-20). The standard eliminates the concept of extraordinary items on the income statement. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. We will adopt this pronouncement for our fiscal year beginning March 1, 2016. We do not expect this pronouncement to have a material effect on our consolidated financial statements. | |||||
In February 2015, the FASB issued an accounting pronouncement (FASB ASU 2015-2) related to the elimination of guidance which has allowed entities with interests in certain investment funds to follow earlier consolidation guidance and makes changes to both the variable interest model and the voting model (FASB ASC 810). This standard will require all entities to re-evaluate consolidation conclusions regarding variable interest entities. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. We will adopt this pronouncement for our fiscal year beginning March 1, 2016, and are currently evaluating the impact on our consolidated financial statements. | |||||
In April 2015, the FASB issued an accounting pronouncement (FASB ASU 2015-3) related to the presentation of debt issuance costs (FASB ASC Subtopic 835-30). This standard will require debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the debt liability rather than as an asset. These costs will continue to be amortized to interest expense using the effective interest method. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, and retrospective adoption is required. We will adopt this pronouncement for our fiscal year beginning March 1, 2016. We do not expect this pronouncement to have a material effect on our consolidated financial statements. | |||||
In April 2015, the FASB issued an accounting pronouncement (FASB ASU 2015-5) which provides guidance regarding whether a cloud computing arrangement includes a software license (FASB ASC Subtopic 350-40). If a cloud computing arrangement includes a software license, then the entity should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the entity should account for the arrangement as a service contract. The guidance will not change GAAP for an entity’s accounting for service contracts. This pronouncement is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2015. We will adopt this pronouncement for our fiscal year beginning March 1, 2016. We do not expect this pronouncement to have a material effect on our consolidated financial statements. | |||||
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended | ||||
Feb. 28, 2015 | |||||
Summary Of Significant Accounting Policies [Abstract] | |||||
Schedule Of Estimated Useful Lives Of Property And Equipment | |||||
Life | |||||
Buildings | 25 years | ||||
Capital lease | 20 years | ||||
Leasehold improvements | 15 years | ||||
Furniture, fixtures and equipment | 3 – 15 years | ||||
CarMax_Auto_Finance_Income_Tab
CarMax Auto Finance Income (Tables) | 12 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
CarMax Auto Finance Income [Abstract] | |||||||||||||||||
Components Of CarMax Auto Finance Income | |||||||||||||||||
Years Ended February 28 | |||||||||||||||||
(In millions) | 2015 | -1% | 2014 | -1% | 2013 | -1% | |||||||||||
Interest margin: | |||||||||||||||||
Interest and fee income | $ | 604.9 | 7.7 | $ | 548.0 | 8.3 | $ | 495.3 | 9.2 | ||||||||
Interest expense | -96.6 | -1.2 | -90 | -1.4 | -95.1 | -1.8 | |||||||||||
Total interest margin | 508.3 | 6.5 | 458.0 | 6.9 | 400.2 | 7.4 | |||||||||||
Provision for loan losses | -82.3 | -1 | -72.2 | -1.1 | -56.2 | -1 | |||||||||||
Total interest margin after | |||||||||||||||||
provision for loan losses | 426.0 | 5.4 | 385.8 | 5.8 | 344.0 | 6.4 | |||||||||||
Other income | ― | ― | 0.1 | ― | ― | ― | |||||||||||
Direct expenses: | |||||||||||||||||
Payroll and fringe benefit expense | -25.3 | -0.3 | -22.6 | -0.3 | -21.2 | -0.4 | |||||||||||
Other direct expenses | -33.4 | -0.4 | -27.1 | -0.4 | -23.5 | -0.4 | |||||||||||
Total direct expenses | -58.7 | -0.7 | -49.7 | -0.8 | -44.7 | -0.8 | |||||||||||
CarMax Auto Finance income | $ | 367.3 | 4.7 | $ | 336.2 | 5.1 | $ | 299.3 | 5.6 | ||||||||
Total average managed receivables | $ | 7,859.9 | $ | 6,629.5 | $ | 5,385.5 | |||||||||||
(1) Percent of total average managed receivables. | |||||||||||||||||
Auto_Loan_Receivables_Tables
Auto Loan Receivables (Tables) | 12 Months Ended | ||||||||||
Feb. 28, 2015 | |||||||||||
Auto Loan Receivables [Abstract] | |||||||||||
Auto Loan Receivables, Net | |||||||||||
As of February 28 | |||||||||||
(In millions) | 2015 | 2014 | |||||||||
Warehouse facilities | $ | 986.0 | $ | 879.0 | |||||||
Term securitizations | 7,226.5 | 6,145.5 | |||||||||
Other receivables (1) | 246.2 | 159.9 | |||||||||
Total ending managed receivables | 8,458.7 | 7,184.4 | |||||||||
Accrued interest and fees | 31.2 | 26.3 | |||||||||
Other | 27.3 | 7.0 | |||||||||
Less allowance for loan losses | -81.7 | -69.9 | |||||||||
Auto loan receivables, net | $ | 8,435.5 | $ | 7,147.8 | |||||||
(1)Other receivables includes receivables not funded through the warehouse facilities or term securitizations. | |||||||||||
Ending Managed Receivables By Major Credit Grade | |||||||||||
As of February 28 | |||||||||||
(In millions) | 2015 (1) | % (2) | 2014 (1) | % (2) | |||||||
A | $ | 4,135.6 | 48.9 | $ | 3,506.0 | 48.8 | |||||
B | 3,055.3 | 36.1 | 2,658.5 | 37.0 | |||||||
C and other | 1,267.8 | 15.0 | 1,019.9 | 14.2 | |||||||
Total ending managed receivables | $ | 8,458.7 | 100.0 | $ | 7,184.4 | 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 | |||||||||||
As of February 28 | |||||||||||
(In millions) | 2015 | % (1) | 2014 | % (1) | |||||||
Balance as of beginning of year | $ | 69.9 | 0.97 | $ | 57.3 | 0.97 | |||||
Charge-offs | -155.9 | -134.3 | |||||||||
Recoveries | 85.4 | 74.7 | |||||||||
Provision for loan losses | 82.3 | 72.2 | |||||||||
Balance as of end of year | $ | 81.7 | 0.97 | $ | 69.9 | 0.97 | |||||
(1)Percent of total ending managed receivables. | |||||||||||
Past Due Receivables | |||||||||||
As of February 28 | |||||||||||
(In millions) | 2015 | % (1) | 2014 | % (1) | |||||||
Total ending managed receivables | $ | 8,458.7 | 100.0 | $ | 7,184.4 | 100.0 | |||||
Delinquent loans: | |||||||||||
31-60 days past due | $ | 152.1 | 1.8 | $ | 126.6 | 1.8 | |||||
61-90 days past due | 52.5 | 0.6 | 42.6 | 0.6 | |||||||
Greater than 90 days past due | 16.8 | 0.2 | 16.0 | 0.2 | |||||||
Total past due | $ | 221.4 | 2.6 | $ | 185.2 | 2.6 | |||||
(1)Percent of total ending managed receivables | |||||||||||
Derivative_Instruments_And_Hed1
Derivative Instruments And Hedging Activities (Tables) | 12 Months Ended | |||||||||||||
Feb. 28, 2015 | ||||||||||||||
Derivative Instruments And Hedging Activities [Abstract] | ||||||||||||||
Fair Values Of Derivative Instruments On The Consolidated Balance Sheets | ||||||||||||||
As of February 28 | ||||||||||||||
2015 | 2014 | |||||||||||||
(In thousands) | Assets | Liabilities | Assets | Liabilities | ||||||||||
Derivatives designated as accounting hedges: | ||||||||||||||
Interest rate swaps (1) | $ | 1,201 | $ | ― | $ | ― | $ | ― | ||||||
Interest rate swaps (2) | ― | -1,064 | ― | -1,351 | ||||||||||
Total derivatives designated as accounting hedges | 1,201 | -1,064 | ― | -1,351 | ||||||||||
Total | $ | 1,201 | $ | -1,064 | $ | ― | $ | -1,351 | ||||||
(1)Reported in other current assets on the consolidated balance sheets. | ||||||||||||||
(2)Reported in accounts payable on the consolidated balance sheets. | ||||||||||||||
Schedule Of Effect Of Derivative Instruments On The Consolidated Statements Of Earnings | Years Ended February 28 | |||||||||||||
(In thousands) | 2015 | 2014 | 2013 | |||||||||||
Derivatives designated as accounting hedges: | ||||||||||||||
Loss recognized in AOCL (1) | $ | -5,847 | $ | -5,286 | $ | -6,691 | ||||||||
Loss reclassified from AOCL into CAF income (1) | $ | -8,118 | $ | -9,872 | $ | -12,981 | ||||||||
Gain recognized in CAF income (2) | $ | ― | $ | 76 | $ | ― | ||||||||
Derivatives not designated as accounting hedges: | ||||||||||||||
Loss recognized in CAF income (3) | $ | ― | $ | ― | $ | -2 | ||||||||
-1 | Represents the effective portion. | |||||||||||||
-2 | Represents the ineffective portion. | |||||||||||||
Represents the loss on interest rate swaps, the net periodic settlements and accrued interest. | ||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||
Feb. 28, 2015 | ||||||||||
Fair Value Measurements [Abstract] | ||||||||||
Schedule Of Items Measured At Fair Value On A Recurring Basis | ||||||||||
As of February 28, 2015 | ||||||||||
(In thousands) | Level 1 | Level 2 | Total | |||||||
Assets: | ||||||||||
Money market securities | $ | 43,250 | $ | ― | $ | 43,250 | ||||
Mutual fund investments | 9,242 | ― | 9,242 | |||||||
Derivative instruments | ― | 1,201 | 1,201 | |||||||
Total assets at fair value | $ | 52,492 | $ | 1,201 | $ | 53,693 | ||||
Percent of total assets at fair value | 97.8 | % | 2.2 | % | 100.0 | % | ||||
Percent of total assets | 0.4 | % | ― | % | 0.4 | % | ||||
Liabilities: | ||||||||||
Derivative instruments | $ | ― | $ | -1,064 | $ | -1,064 | ||||
Total liabilities at fair value | $ | ― | $ | -1,064 | $ | -1,064 | ||||
Percent of total liabilities | ― | % | ― | % | ― | % | ||||
As of February 28, 2014 | ||||||||||
(In thousands) | Level 1 | Level 2 | Total | |||||||
Assets: | ||||||||||
Money market securities | $ | 641,622 | $ | ― | $ | 641,622 | ||||
Mutual fund investments | 5,609 | ― | 5,609 | |||||||
Total assets at fair value | $ | 647,231 | $ | ― | $ | 647,231 | ||||
Percent of total assets at fair value | 100.0 | % | ― | % | 100.0 | % | ||||
Percent of total assets | 5.5 | % | ― | % | 5.5 | % | ||||
Liabilities: | ||||||||||
Derivative instruments | $ | ― | $ | 1,351 | $ | 1,351 | ||||
Total liabilities at fair value | $ | ― | $ | 1,351 | $ | 1,351 | ||||
Percent of total liabilities | ― | % | ― | % | ― | % | ||||
Property_And_Equipment_Tables
Property And Equipment (Tables) | 12 Months Ended | ||||||
Feb. 28, 2015 | |||||||
Property And Equipment [Abstract] | |||||||
Schedule Of Property And Equipment | |||||||
As of February 28 | |||||||
(In thousands) | 2015 | 2014 | |||||
Land | $ | 397,097 | $ | 346,518 | |||
Land held for sale | 1,191 | 1,050 | |||||
Land held for development | 151,306 | 170,387 | |||||
Buildings | 1,389,063 | 1,244,772 | |||||
Capital leases | 1,739 | 1,739 | |||||
Leasehold improvements | 146,140 | 129,186 | |||||
Furniture, fixtures and equipment | 389,650 | 343,958 | |||||
Construction in progress | 209,058 | 145,923 | |||||
Total property and equipment | 2,685,244 | 2,383,533 | |||||
Less accumulated depreciation and amortization | 822,706 | 730,556 | |||||
Property and equipment, net | $ | 1,862,538 | $ | 1,652,977 | |||
Cancellation_Reserves_Tables
Cancellation Reserves (Tables) | 12 Months Ended | |||||
Feb. 28, 2015 | ||||||
Cancellation Reserves [Abstract] | ||||||
Schedule Of Cancellation Reserves Accrual | ||||||
As of February 28 | ||||||
(In millions) | 2015 | 2014 | ||||
Balance as of beginning of year | $ | 72.5 | $ | 32.7 | ||
Cancellations | -49.1 | -36.9 | ||||
Provision for future cancellations | 71.0 | 76.7 | ||||
Balance as of end of year | $ | 94.4 | $ | 72.5 | ||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||
Feb. 28, 2015 | ||||||||||
Income Taxes [Abstract] | ||||||||||
Schedule Of Income Tax Provision | ||||||||||
Years Ended February 28 | ||||||||||
(In thousands) | 2015 | 2014 | 2013 | |||||||
Current: | ||||||||||
Federal | $ | 329,211 | $ | 283,174 | $ | 232,652 | ||||
State | 47,061 | 38,747 | 30,557 | |||||||
Total | 376,272 | 321,921 | 263,209 | |||||||
Deferred: | ||||||||||
Federal | -3,499 | -15,129 | 4,705 | |||||||
State | -800 | -2,056 | -847 | |||||||
Total | -4,299 | -17,185 | 3,858 | |||||||
Income tax provision | $ | 371,973 | $ | 304,736 | $ | 267,067 | ||||
Schedule Of Effective Income Tax Rate Reconciliation | ||||||||||
Years Ended February 28 | ||||||||||
2015 | 2014 | 2013 | ||||||||
Federal statutory income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||||
State and local income taxes, net of federal benefit | 3.4 | 3.1 | 2.9 | |||||||
Nondeductible and other items | 0.2 | 0.2 | 0.2 | |||||||
Credits | -0.2 | -0.1 | ― | |||||||
Effective income tax rate | 38.4 | % | 38.2 | % | 38.1 | % | ||||
Schedule Of Temporary Differences Resulting In Deferred Tax Assets And Liabilities | ||||||||||
As of February 28 | ||||||||||
(In thousands) | 2015 | 2014 | ||||||||
Deferred tax assets: | ||||||||||
Accrued expenses | $ | 52,933 | $ | 48,611 | ||||||
Partnership basis | 95,443 | 71,503 | ||||||||
Stock compensation | 63,148 | 60,158 | ||||||||
Derivatives | 4,010 | 4,896 | ||||||||
Capital loss carry forward | 1,597 | 1,296 | ||||||||
Total gross deferred tax assets | 217,131 | 186,464 | ||||||||
Less: valuation allowance | -1,597 | -1,296 | ||||||||
Net gross deferred tax assets | 215,534 | 185,168 | ||||||||
Deferred tax liabilities: | ||||||||||
Prepaid expenses | 17,935 | 13,991 | ||||||||
Property and equipment | 14,816 | 3,737 | ||||||||
Inventory | 7,045 | 7,375 | ||||||||
Total gross deferred tax liabilities | 39,796 | 25,103 | ||||||||
Net deferred tax asset | $ | 175,738 | $ | 160,065 | ||||||
Schedule Of Reconciliation Of Unrecognized Tax Benefits | ||||||||||
Years Ended February 28 | ||||||||||
(In thousands) | 2015 | 2014 | 2013 | |||||||
Balance at beginning of year | $ | 26,330 | $ | 25,059 | $ | 20,930 | ||||
Increases for tax positions of prior years | 1,549 | 1,523 | 1,685 | |||||||
Decreases for tax positions of prior years | -5,999 | -4,658 | -596 | |||||||
Increases based on tax positions related to the current year | 5,467 | 5,960 | 7,491 | |||||||
Settlements | -612 | -809 | -4,136 | |||||||
Lapse of statute | -1,784 | -745 | -315 | |||||||
Balance at end of year | $ | 24,951 | $ | 26,330 | $ | 25,059 | ||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||||||||||
Benefit Plan Information | ||||||||||||||||||||||||||||
As of February 28 | ||||||||||||||||||||||||||||
Pension Plan | Restoration Plan | Total | ||||||||||||||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
Change in projected benefit | ||||||||||||||||||||||||||||
obligation: | ||||||||||||||||||||||||||||
Obligation at beginning of year | $ | 177,674 | $ | 177,531 | $ | 10,187 | $ | 9,408 | $ | 187,861 | $ | 186,939 | ||||||||||||||||
Interest cost | 8,032 | 7,583 | 453 | 433 | 8,485 | 8,016 | ||||||||||||||||||||||
Actuarial loss (gain) | 34,989 | -4,980 | 840 | 803 | 35,829 | -4,177 | ||||||||||||||||||||||
Benefits paid | -2,506 | -2,460 | -428 | -457 | -2,934 | -2,917 | ||||||||||||||||||||||
Obligation at end of year | 218,189 | 177,674 | 11,052 | 10,187 | 229,241 | 187,861 | ||||||||||||||||||||||
Change in fair value of plan assets: | ||||||||||||||||||||||||||||
Plan assets at beginning of year | 124,712 | 107,968 | ― | ― | 124,712 | 107,968 | ||||||||||||||||||||||
Actual return on plan assets | 10,732 | 19,204 | ― | ― | 10,732 | 19,204 | ||||||||||||||||||||||
Employer contributions | 2,311 | ― | 428 | 457 | 2,739 | 457 | ||||||||||||||||||||||
Benefits paid | -2,506 | -2,460 | -428 | -457 | -2,934 | -2,917 | ||||||||||||||||||||||
Plan assets at end of year | 135,249 | 124,712 | ― | ― | 135,249 | 124,712 | ||||||||||||||||||||||
Funded status recognized | $ | -82,940 | $ | -52,962 | $ | -11,052 | $ | -10,187 | $ | -93,992 | $ | -63,149 | ||||||||||||||||
Amounts recognized in the | ||||||||||||||||||||||||||||
consolidated balance sheets: | ||||||||||||||||||||||||||||
Current liability | $ | ― | $ | ― | $ | -462 | $ | -451 | $ | -462 | $ | -451 | ||||||||||||||||
Noncurrent liability | -82,940 | -52,962 | -10,590 | -9,736 | -93,530 | -62,698 | ||||||||||||||||||||||
Net amount recognized | $ | -82,940 | $ | -52,962 | $ | -11,052 | $ | -10,187 | $ | -93,992 | $ | -63,149 | ||||||||||||||||
Accumulated benefit obligation | $ | 218,189 | $ | 177,674 | $ | 11,052 | $ | 10,187 | $ | 229,241 | $ | 187,861 | ||||||||||||||||
Schedule Of Fair Value Of Plan Assets | ||||||||||||||||||||||||||||
As of February 28 | ||||||||||||||||||||||||||||
(In thousands) | 2015 | 2014 | ||||||||||||||||||||||||||
Mutual funds (Level 1): | ||||||||||||||||||||||||||||
Equity securities (1) | $ | 84,303 | $ | 78,576 | ||||||||||||||||||||||||
Equity securities – international (2) | 17,114 | 15,649 | ||||||||||||||||||||||||||
Fixed income securities (3) | 32,549 | 29,500 | ||||||||||||||||||||||||||
Collective funds (Level 2): | ||||||||||||||||||||||||||||
Short-term investments (4) | 1,341 | 1,046 | ||||||||||||||||||||||||||
Investment payables, net | -58 | -59 | ||||||||||||||||||||||||||
Total | $ | 135,249 | $ | 124,712 | ||||||||||||||||||||||||
(1)Includes large-, mid- and small-cap companies primarily from diverse U.S. industries including pharmaceutical, bank, oil and gas, retail and computer sectors; approximately 95% of securities relate to U.S. entities and 5% of securities relate to non-U.S. entities as of February 28, 2015 (95% and 5%, respectively, as of February 28, 2014) . | ||||||||||||||||||||||||||||
(2)Consists of equity securities of primarily foreign corporations from diverse industries including bank, pharmaceutical, insurance, telecommunication, food, and oil and gas sectors; 100% of securities relate to non-U.S. entities as of February 28, 2015 (100% relate to non-U.S. entities, as of February 28, 2014). | ||||||||||||||||||||||||||||
(3)Includes debt securities of U.S. and foreign governments, their agencies and corporations, and diverse investments in mortgage-backed securities and banks; approximately 85% of securities relate to U.S. entities and 15% of securities relate to non-U.S. entities as of February 28, 2015 (90% and 10%, respectively, as of February 28, 2014). | ||||||||||||||||||||||||||||
(4)Includes pooled funds representing short-term instruments that include governments, their agencies and corporations and large-, mid- and small-cap companies primarily from the U.S. bank sector; nearly 100% of securities relate to U.S. entities as of February 28, 2015 (nearly 100% as of February 28, 2014). | ||||||||||||||||||||||||||||
Estimated Future Benefit Payments | ||||||||||||||||||||||||||||
Pension | Restoration | |||||||||||||||||||||||||||
(In thousands) | Plan | Plan | ||||||||||||||||||||||||||
Fiscal 2016 | $ | 2,500 | $ | 462 | ||||||||||||||||||||||||
Fiscal 2017 | $ | 2,798 | $ | 474 | ||||||||||||||||||||||||
Fiscal 2018 | $ | 3,097 | $ | 482 | ||||||||||||||||||||||||
Fiscal 2019 | $ | 3,474 | $ | 482 | ||||||||||||||||||||||||
Fiscal 2020 | $ | 3,867 | $ | 492 | ||||||||||||||||||||||||
Fiscal 2021 to 2025 | $ | 26,563 | $ | 2,904 | ||||||||||||||||||||||||
Components Of Net Pension Expense | ||||||||||||||||||||||||||||
Years Ended February 28 | ||||||||||||||||||||||||||||
(In thousands) | Pension Plan | Restoration Plan | Total | |||||||||||||||||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 | ||||||||||||||||||||
Interest cost | $ | 8,032 | $ | 7,583 | $ | 7,299 | $ | 453 | $ | 433 | $ | 458 | $ | 8,485 | $ | 8,016 | $ | 7,757 | ||||||||||
Expected return on | ||||||||||||||||||||||||||||
plan assets | -9,030 | -7,916 | -7,591 | ― | ― | ― | -9,030 | -7,916 | -7,591 | |||||||||||||||||||
Recognized actuarial | ||||||||||||||||||||||||||||
loss | 1,361 | 1,674 | 1,200 | ― | ― | ― | 1,361 | 1,674 | 1,200 | |||||||||||||||||||
Net pension expense | $ | 363 | $ | 1,341 | $ | 908 | $ | 453 | $ | 433 | $ | 458 | $ | 816 | $ | 1,774 | $ | 1,366 | ||||||||||
Changes Recognized In Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||||
Years Ended February 28 | ||||||||||||||||||||||||||||
Pension Plan | Restoration Plan | Total | ||||||||||||||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
Net actuarial loss (gain) | $ | 33,286 | $ | -16,268 | $ | 840 | $ | 803 | $ | 34,126 | $ | -15,465 | ||||||||||||||||
Benefit Obligations [Member] | ||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||||||||||
Schedule Of Assumptions Used | ||||||||||||||||||||||||||||
As of February 28 | ||||||||||||||||||||||||||||
Pension Plan | Restoration Plan | |||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||
Discount rate (1) | 4.00 | % | 4.55 | % | 4.00 | % | 4.55 | % | ||||||||||||||||||||
(1)For the restoration plan, the discount rate presented is applied to the pre-2004 annuity amounts. A rate of 4.50% is assumed for the post-2004 lump sum amounts paid from the plan for fiscal 2015 and fiscal 2014. | ||||||||||||||||||||||||||||
Net Pension Expense [Member] | ||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||||||||||
Schedule Of Assumptions Used | ||||||||||||||||||||||||||||
Years Ended February 28 | ||||||||||||||||||||||||||||
Pension Plan | Restoration Plan | |||||||||||||||||||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||||||||||||
Discount rate (1) | 4.55 | % | 4.30 | % | 4.75 | % | 4.55 | % | 4.30 | % | 4.75 | % | ||||||||||||||||
Expected rate of return on plan assets | 7.75 | % | 7.75 | % | 7.75 | % | ― | ― | ― | |||||||||||||||||||
(1)For the restoration plan, the discount rate presented is applied to the pre-2004 annuity amounts. A rate of 4.50% is assumed for post-2004 lump sum amounts paid from the plan for fiscal 2015, fiscal 2014 and fiscal 2013. | ||||||||||||||||||||||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||
Feb. 28, 2015 | |||||||
Debt [Abstract] | |||||||
Schedule Of Debt | |||||||
As of February 28 | |||||||
(In thousands) | 2015 | 2014 | |||||
Short-term revolving credit facility | $ | 785 | $ | 582 | |||
Current portion of long-term debt | 10,000 | ― | |||||
Current portion of finance and capital lease obligations | 21,554 | 18,459 | |||||
Current portion of non-recourse notes payable | 258,163 | 223,938 | |||||
Total current debt | 290,502 | 242,979 | |||||
Long-term debt | 300,000 | ― | |||||
Finance and capital lease obligations, excluding current portion | 306,284 | 315,925 | |||||
Non-recourse notes payable, excluding current portion | 8,212,466 | 7,024,506 | |||||
Total debt, excluding current portion | 8,818,750 | 7,340,431 | |||||
Total debt | $ | 9,109,252 | $ | 7,583,410 | |||
Stock_And_StockBased_Incentive1
Stock And Stock-Based Incentive Plans (Tables) | 12 Months Ended | ||||||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Composition Of Share-Based Compensation Expense | |||||||||||||||||||||
Years Ended February 28 | |||||||||||||||||||||
(In thousands) | 2015 | 2014 | 2013 | ||||||||||||||||||
Cost of sales | $ | 4,236 | $ | 3,200 | $ | 3,010 | |||||||||||||||
CarMax Auto Finance income | 5,898 | 2,983 | 2,521 | ||||||||||||||||||
Selling, general and administrative expenses | 73,020 | 61,487 | 57,643 | ||||||||||||||||||
Share-based compensation expense, before income taxes | $ | 83,154 | $ | 67,670 | $ | 63,174 | |||||||||||||||
Composition Of Share-Based Compensation Expense - By Grant Type | |||||||||||||||||||||
Years Ended February 28 | |||||||||||||||||||||
(In thousands) | 2015 | 2014 | 2013 | ||||||||||||||||||
Nonqualified stock options | $ | 28,954 | $ | 23,914 | $ | 24,853 | |||||||||||||||
Cash-settled restricted stock units | 38,539 | 29,551 | 24,268 | ||||||||||||||||||
Stock-settled restricted stock units | 13,299 | 12,515 | 12,441 | ||||||||||||||||||
Employee stock purchase plan | 1,274 | 1,190 | 1,062 | ||||||||||||||||||
Stock grants to non-employee directors | ― | 500 | 550 | ||||||||||||||||||
Restricted stock to non-employee directors | 1,088 | ― | ― | ||||||||||||||||||
Share-based compensation expense, before income taxes | $ | 83,154 | $ | 67,670 | $ | 63,174 | |||||||||||||||
Stock Option Activity | |||||||||||||||||||||
Weighted | |||||||||||||||||||||
Average | |||||||||||||||||||||
Weighted | Remaining | Aggregate | |||||||||||||||||||
Number of | Average | Contractual | Intrinsic | ||||||||||||||||||
(Shares and intrinsic value in thousands) | Shares | Exercise Price | Life (Years) | Value | |||||||||||||||||
Outstanding as of February 28, 2014 | 10,018 | $ | 27.02 | ||||||||||||||||||
Options granted | 2,057 | 45.08 | |||||||||||||||||||
Options exercised | -4,390 | 20.46 | |||||||||||||||||||
Options forfeited or expired | -40 | 37.44 | |||||||||||||||||||
Outstanding as of February 28, 2015 | 7,645 | $ | 35.59 | 4.3 | $ | 240,941 | |||||||||||||||
Exercisable as of February 28, 2015 | 3,597 | $ | 29.86 | 3.3 | $ | 133,975 | |||||||||||||||
Outstanding Stock Options | |||||||||||||||||||||
As of February 28, 2015 | |||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Weighted | |||||||||||||||||||||
Average | Weighted | Weighted | |||||||||||||||||||
Remaining | Average | Average | |||||||||||||||||||
(Shares in thousands) | Number of | Contractual | Exercise | Number of | Exercise | ||||||||||||||||
Range of Exercise Prices | Shares | Life (Years) | Price | Shares | Price | ||||||||||||||||
$ | 11.43 | - | $ | 14.49 | 458 | 1.0 | $ | 12.03 | 458 | $ | 12.03 | ||||||||||
$ | 19.82 | - | $ | 30.24 | 723 | 2.4 | $ | 25.46 | 699 | $ | 25.30 | ||||||||||
$ | 31.76 | 1,732 | 4.1 | $ | 31.76 | 903 | $ | 31.76 | |||||||||||||
$ | 32.05 | - | $ | 33.11 | 1,356 | 3.1 | $ | 32.70 | 1,036 | $ | 32.70 | ||||||||||
$ | 42.68 | 1,411 | 5.1 | $ | 42.68 | 399 | $ | 42.68 | |||||||||||||
$ | 44.96 | - | $ | 67.82 | 1,965 | 6.1 | $ | 45.12 | 102 | $ | 45.47 | ||||||||||
Total | 7,645 | 4.3 | $ | 35.59 | 3,597 | $ | 29.86 | ||||||||||||||
Assumptions Used To Estimate Option Values | |||||||||||||||||||||
Years Ended February 28 | |||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
Dividend yield | 0.0 | % | 0.0 | % | 0.0 | % | |||||||||||||||
Expected volatility factor (1) | 25.2 | % | - | 32.7 | % | 27.9 | % | - | 46.8 | % | 31.1 | % | - | 51.4 | % | ||||||
Weighted average expected volatility | 31.8 | % | 44.7 | % | 49.4 | % | |||||||||||||||
Risk-free interest rate (2) | 0.01 | % | - | 2.7 | % | 0.02 | % | - | 2.6 | % | 0.02 | % | - | 2.0 | % | ||||||
Expected term (in years) (3) | 4.7 | 4.7 | 4.7 | ||||||||||||||||||
(1)Measured using historical daily price changes of our stock for a period corresponding to the term of the options and the implied volatility derived from the market prices of traded options on our stock. | |||||||||||||||||||||
(2)Based on the U.S. Treasury yield curve at the time of grant. | |||||||||||||||||||||
(3)Represents the estimated number of years that options will be outstanding prior to exercise. | |||||||||||||||||||||
Share Repurchase Program [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Schedule Of Common Stock Repurchases | |||||||||||||||||||||
Years Ended February 28 | |||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
Number of shares repurchased (in thousands) | 17,511.0 | 6,859.5 | 5,762.0 | ||||||||||||||||||
Average cost per share | $ | 52.13 | $ | 44.61 | $ | 36.77 | |||||||||||||||
Available for repurchase, as of end of year (in millions) | $ | 2,369.3 | $ | 282.1 | $ | 588.1 | |||||||||||||||
Cash-Settled For Restricted Stock Unit [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Restricted Stock Awards And Restricted Stock Unit Activity | |||||||||||||||||||||
Weighted | |||||||||||||||||||||
Average | |||||||||||||||||||||
Number of | Grant Date | ||||||||||||||||||||
(Units in thousands) | Units | Fair Value | |||||||||||||||||||
Outstanding as of February 28, 2014 | 1,531 | $ | 35.68 | ||||||||||||||||||
Stock units granted | 588 | $ | 44.96 | ||||||||||||||||||
Stock units vested and converted | -474 | $ | 32.93 | ||||||||||||||||||
Stock units cancelled | -115 | $ | 39.55 | ||||||||||||||||||
Outstanding as of February 28, 2015 | 1,530 | $ | 39.81 | ||||||||||||||||||
Expected Cash Settlement Range Upon Restricted Stock Unit Vesting | |||||||||||||||||||||
As of February 28, 2015 | |||||||||||||||||||||
(In thousands) | Minimum (1) | Maximum (1) | |||||||||||||||||||
Fiscal 2016 | $ | 12,180 | $ | 32,479 | |||||||||||||||||
Fiscal 2017 | 13,950 | 37,199 | |||||||||||||||||||
Fiscal 2018 | 16,137 | 43,033 | |||||||||||||||||||
Total expected cash settlements | $ | 42,267 | $ | 112,711 | |||||||||||||||||
(1)Net of estimated forfeitures. | |||||||||||||||||||||
Stock-Settled Restricted Stock Units [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Restricted Stock Awards And Restricted Stock Unit Activity | |||||||||||||||||||||
Weighted | |||||||||||||||||||||
Average | |||||||||||||||||||||
Number of | Grant Date | ||||||||||||||||||||
(Units in thousands) | Units | Fair Value | |||||||||||||||||||
Outstanding as of February 28, 2014 | 852 | $ | 45.26 | ||||||||||||||||||
Stock units granted | 250 | $ | 55.48 | ||||||||||||||||||
Stock units vested and converted | -302 | $ | 45.69 | ||||||||||||||||||
Stock units cancelled | -26 | $ | 48.10 | ||||||||||||||||||
Outstanding as of February 28, 2015 | 774 | $ | 48.30 | ||||||||||||||||||
Net_Earnings_Per_Share_Tables
Net Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Feb. 28, 2015 | ||||||||||||
Net Earnings Per Share [Abstract] | ||||||||||||
Basic And Dilutive Net Earnings Per Share Reconciliations | ||||||||||||
Years Ended February 28 | ||||||||||||
(In thousands except per share data) | 2015 | 2014 | 2013 | |||||||||
Net earnings | $ | 597,358 | $ | 492,586 | $ | 434,284 | ||||||
Weighted average common shares outstanding | 215,617 | 223,589 | 228,095 | |||||||||
Dilutive potential common shares: | ||||||||||||
Stock options | 2,369 | 3,255 | 3,161 | |||||||||
Stock-settled restricted stock units | 705 | 740 | 567 | |||||||||
Weighted average common shares and dilutive | ||||||||||||
potential common shares | 218,691 | 227,584 | 231,823 | |||||||||
Basic net earnings per share | $ | 2.77 | $ | 2.20 | $ | 1.90 | ||||||
Diluted net earnings per share | $ | 2.73 | $ | 2.16 | $ | 1.87 | ||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | |||||||||||||
Changes In Accumulated Other Comprehensive Loss By Component | |||||||||||||
Total | |||||||||||||
Net | Accumulated | ||||||||||||
Unrecognized | Net | Other | |||||||||||
Actuarial | Unrecognized | Comprehensive | |||||||||||
(In thousands, net of income taxes) | Losses | Hedge Losses | Loss | ||||||||||
Balance as of February 29, 2012 | $ | -39,774 | $ | -22,685 | $ | -62,459 | |||||||
Other comprehensive (loss) income before reclassifications | -10,456 | 4,485 | -5,971 | ||||||||||
Amounts reclassified from accumulated other | |||||||||||||
comprehensive loss | 751 | 7,871 | 8,622 | ||||||||||
Other comprehensive (loss) income | -9,705 | 12,356 | 2,651 | ||||||||||
Balance as of February 28, 2013 | -49,479 | -10,329 | -59,808 | ||||||||||
Other comprehensive income (loss) before reclassifications | 9,713 | -3,216 | 6,497 | ||||||||||
Amounts reclassified from accumulated other | |||||||||||||
comprehensive loss | 1,051 | 5,989 | 7,040 | ||||||||||
Other comprehensive income | 10,764 | 2,773 | 13,537 | ||||||||||
Balance as of February 28, 2014 | -38,715 | -7,556 | -46,271 | ||||||||||
Other comprehensive (loss) income before reclassifications | -21,358 | -3,535 | -24,893 | ||||||||||
Amounts reclassified from accumulated other | |||||||||||||
comprehensive loss | 853 | 4,920 | 5,773 | ||||||||||
Other comprehensive (loss) income | -20,505 | 1,385 | -19,120 | ||||||||||
Balance as of February 28, 2015 | $ | -59,220 | $ | -6,171 | $ | -65,391 | |||||||
Changes In And Reclassifications Out Of Accumulated Other Comprehensive Loss | |||||||||||||
Years Ended February 28 | |||||||||||||
(In thousands) | 2015 | 2014 | 2013 | ||||||||||
Retirement Benefit Plans (Note 10): | |||||||||||||
Actuarial (loss) gain arising during the year | $ | -34,126 | $ | 15,465 | $ | -16,694 | |||||||
Tax benefit (expense) | 12,768 | -5,752 | 6,238 | ||||||||||
Actuarial (loss) gain arising during the year, | |||||||||||||
net of tax | -21,358 | 9,713 | -10,456 | ||||||||||
Actuarial loss amortization reclassifications | |||||||||||||
in net pension expense: | |||||||||||||
Cost of sales | 558 | 669 | 483 | ||||||||||
CarMax Auto Finance income | 31 | 38 | 28 | ||||||||||
Selling, general and administrative expenses | 772 | 967 | 689 | ||||||||||
Total amortization reclassifications recognized | |||||||||||||
in net pension expense | 1,361 | 1,674 | 1,200 | ||||||||||
Tax expense | -508 | -623 | -449 | ||||||||||
Amortization reclassifications recognized in net | |||||||||||||
pension expense, net of tax | 853 | 1,051 | 751 | ||||||||||
Net change in retirement benefit plan unrecognized | |||||||||||||
actuarial losses, net of tax | -20,505 | 10,764 | -9,705 | ||||||||||
Cash Flow Hedges (Note 5): | |||||||||||||
Effective portion of changes in fair value | -5,847 | -5,286 | -6,691 | ||||||||||
Tax benefit (1) | 2,312 | 2,070 | 11,176 | ||||||||||
Effective portion of changes in fair value, net of tax | -3,535 | -3,216 | 4,485 | ||||||||||
Reclassifications to CarMax Auto Finance income | 8,118 | 9,872 | 12,981 | ||||||||||
Tax expense | -3,198 | -3,883 | -5,110 | ||||||||||
Reclassification of hedge losses, net of tax | 4,920 | 5,989 | 7,871 | ||||||||||
Net change in cash flow hedge unrecognized losses, | |||||||||||||
net of tax | 1,385 | 2,773 | 12,356 | ||||||||||
Total other comprehensive (loss) income, net of tax | $ | -19,120 | $ | 13,537 | $ | 2,651 | |||||||
Lease_Commitments_Tables
Lease Commitments (Tables) | 12 Months Ended | |||||||||||
Feb. 28, 2015 | ||||||||||||
Lease Commitments [Abstract] | ||||||||||||
Schedule Of Future Minimum Lease Obligations | ||||||||||||
As of February 28, 2015 | ||||||||||||
Capital | Finance | Operating Lease | ||||||||||
(In thousands) | Lease (1) | Leases (1) | Commitments (1) | |||||||||
Fiscal 2016 | $ | 333 | $ | 48,217 | $ | 43,156 | ||||||
Fiscal 2017 | 354 | 42,587 | 41,543 | |||||||||
Fiscal 2018 | 354 | 36,040 | 39,510 | |||||||||
Fiscal 2019 | 354 | 33,526 | 38,743 | |||||||||
Fiscal 2020 | 354 | 32,320 | 36,829 | |||||||||
Fiscal 2021 and thereafter | 4,810 | 152,642 | 242,892 | |||||||||
Total minimum lease payments | 6,559 | 345,332 | 442,673 | |||||||||
Less amounts representing interest | -3,753 | |||||||||||
Present value of net minimum lease payments | $ | 2,806 | ||||||||||
-1 | Excludes taxes, insurance and other costs payable directly by us. These costs vary from year to year and are incurred in | |||||||||||
the ordinary course of business. | ||||||||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Selected Quarterly Financial Data [Abstract] | |||||||||||||||||
Schedule Of Selected Quarterly Financial Data | |||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Fiscal Year | |||||||||||||
(In thousands, except per share data) | 2015 | 2015 | 2015 | 2015 (1) | 2015 | ||||||||||||
Net sales and operating revenues | $ | 3,750,196 | $ | 3,599,194 | $ | 3,405,234 | $ | 3,514,092 | $ | 14,268,716 | |||||||
Gross profit | $ | 501,731 | $ | 463,339 | $ | 446,620 | $ | 475,837 | $ | 1,887,527 | |||||||
CarMax Auto Finance income | $ | 94,615 | $ | 92,574 | $ | 89,722 | $ | 90,383 | $ | 367,294 | |||||||
Selling, general and administrative | |||||||||||||||||
expenses | $ | 313,446 | $ | 297,638 | $ | 316,632 | $ | 330,009 | $ | 1,257,725 | |||||||
Net earnings | $ | 169,653 | $ | 154,518 | $ | 130,049 | $ | 143,138 | $ | 597,358 | |||||||
Net earnings per share: | |||||||||||||||||
Basic | $ | 0.77 | $ | 0.71 | $ | 0.61 | $ | 0.68 | $ | 2.77 | |||||||
Diluted | $ | 0.76 | $ | 0.70 | $ | 0.60 | $ | 0.67 | $ | 2.73 | |||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Fiscal Year | |||||||||||||
(In thousands, except per share data) | 2014 | 2014 | 2014 | 2014 (2) | 2014 (2) | ||||||||||||
Net sales and operating revenues | $ | 3,311,057 | $ | 3,245,552 | $ | 2,941,407 | $ | 3,076,283 | $ | 12,574,299 | |||||||
Gross profit | $ | 448,096 | $ | 434,743 | $ | 381,721 | $ | 384,141 | $ | 1,648,701 | |||||||
CarMax Auto Finance income | $ | 87,019 | $ | 84,422 | $ | 83,905 | $ | 80,821 | $ | 336,167 | |||||||
Selling, general and administrative | |||||||||||||||||
expenses | $ | 290,189 | $ | 283,206 | $ | 284,366 | $ | 297,454 | $ | 1,155,215 | |||||||
Net earnings | $ | 146,651 | $ | 140,274 | $ | 106,452 | $ | 99,209 | $ | 492,586 | |||||||
Net earnings per share: | |||||||||||||||||
Basic | $ | 0.65 | $ | 0.63 | $ | 0.48 | $ | 0.45 | $ | 2.20 | |||||||
Diluted | $ | 0.64 | $ | 0.62 | $ | 0.47 | $ | 0.44 | $ | 2.16 | |||||||
-1 | During the fourth quarter of fiscal 2015, we capitalized $8.9 million of interest expense, of which $6.9 million, or $0.02 per share, related to earlier quarters in fiscal 2015. | ||||||||||||||||
-2 | As disclosed in Note 8, during the fourth quarter of fiscal 2014, we corrected our accounting related to cancellation reserves for our ESP and GAP products. The correction of the out of period error consisted of $0.02 per share pertaining to earlier quarters in fiscal 2014 and $0.05 per share pertaining to fiscal 2013 and fiscal 2012. | ||||||||||||||||
Summary_Of_Significant_Account3
Summary Of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
warehouse | |||
Cash equivalents | $48,000 | $607,000,000 | |
Liquid investments, maturity period | three months or less | ||
Restricted cash from collections on auto loan receivables | 294,122,000 | 259,299,000 | |
Proceeds from Sale of Trading Securities | 655,000 | 466,000 | 30,318,000 |
Trading Securities, Realized Gain (Loss) | 200,000 | 0 | |
Number of warehouses | 2 | ||
Required benchmark for account delinquency | 120 days | ||
Goodwill and other intangibles, carrying value | 10,100,000 | 10,100,000 | |
Impairment of goodwill or intangible assets | 0 | 0 | 0 |
Restricted cash on deposit in reserve accounts | 42,700,000 | 32,500,000 | |
Restricted investments | 52,400,000 | 40,200,000 | |
Accrued compensation and benefits | 148,400,000 | 120,700,000 | |
General liability and workers' compensation insurance | 36,700,000 | 29,700,000 | |
Retail vehicle sales money-back guarantee period, in days | 5 days | ||
ESPs offered on all used vehicles provide coverage for a period of time, in months | 60 | ||
Advertising expenses | $124,300,000 | $114,600,000 | $108,200,000 |
Finance Leases [Member] | |||
Estimated useful life average, years | 25 years |
Summary_Of_Significant_Account4
Summary Of Significant Accounting Policies (Schedule Of Estimated Useful Lives) (Details) | 12 Months Ended |
Feb. 28, 2015 | |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life average, years | 25 years |
Capital Leases [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life average, years | 20 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life average, years | 15 years |
Minimum [Member] | Furniture, Fixtures And Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life average, years | 3 years |
Maximum [Member] | Furniture, Fixtures And Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life average, years | 15 years |
CarMax_Auto_Finance_Income_Com
CarMax Auto Finance Income (Components Of CarMax Auto Finance Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | ||||
Auto Finance Income [Line Items] | ||||||||||||||
Interest and fee income | $604,900,000 | $548,000,000 | $495,300,000 | |||||||||||
Interest expense | -96,600,000 | -90,000,000 | -95,100,000 | |||||||||||
Total interest margin | 508,300,000 | 458,000,000 | 400,200,000 | |||||||||||
Provision for loan losses | -82,300,000 | -72,200,000 | -56,200,000 | |||||||||||
Total interest margin after provision for loan losses | 426,000,000 | 385,800,000 | 344,000,000 | |||||||||||
Other income | 0 | 100,000 | 0 | |||||||||||
Payroll and fringe benefit expense | -25,300,000 | -22,600,000 | -21,200,000 | |||||||||||
Other direct expenses | -33,400,000 | -27,100,000 | -23,500,000 | |||||||||||
Total direct expenses | -58,700,000 | -49,700,000 | -44,700,000 | |||||||||||
CarMax Auto Finance income | 90,383,000 | 89,722,000 | 92,574,000 | 94,615,000 | 80,821,000 | 83,905,000 | 84,422,000 | 87,019,000 | 367,294,000 | 336,167,000 | 299,267,000 | |||
Average Balance of Loans Held in Porfolio | $7,859,900,000 | $6,629,500,000 | $5,385,500,000 | |||||||||||
Interest And Fee Income [Member] | ||||||||||||||
Auto Finance Income [Line Items] | ||||||||||||||
Item as percent of total average managed receivables | 7.70% | [1] | 8.30% | [1] | 9.20% | [1] | ||||||||
Interest Expense [Member] | ||||||||||||||
Auto Finance Income [Line Items] | ||||||||||||||
Item as percent of total average managed receivables | -1.20% | [1] | -1.40% | [1] | -1.80% | [1] | ||||||||
Total Interest Margin [Member] | ||||||||||||||
Auto Finance Income [Line Items] | ||||||||||||||
Item as percent of total average managed receivables | 6.50% | [1] | 6.90% | [1] | 7.40% | [1] | ||||||||
Provision For Loan Losses [Member] | ||||||||||||||
Auto Finance Income [Line Items] | ||||||||||||||
Item as percent of total average managed receivables | -1.00% | [1] | -1.10% | [1] | -1.00% | [1] | ||||||||
Total Interest Margin After Provision For Loan Losses [Member] | ||||||||||||||
Auto Finance Income [Line Items] | ||||||||||||||
Item as percent of total average managed receivables | 5.40% | [1] | 5.80% | [1] | 6.40% | [1] | ||||||||
Other Income [Member] | ||||||||||||||
Auto Finance Income [Line Items] | ||||||||||||||
Item as percent of total average managed receivables | 0.00% | [1] | 0.00% | [1] | 0.00% | [1] | ||||||||
Payroll And Fringe Benefit Expense [Member] | ||||||||||||||
Auto Finance Income [Line Items] | ||||||||||||||
Item as percent of total average managed receivables | -0.30% | [1] | -0.30% | [1] | -0.40% | [1] | ||||||||
Other Direct Expenses [Member] | ||||||||||||||
Auto Finance Income [Line Items] | ||||||||||||||
Item as percent of total average managed receivables | -0.40% | [1] | -0.40% | [1] | -0.40% | [1] | ||||||||
Total Direct Expenses [Member] | ||||||||||||||
Auto Finance Income [Line Items] | ||||||||||||||
Item as percent of total average managed receivables | -0.70% | [1] | -0.80% | [1] | -0.80% | [1] | ||||||||
CAF Income [Member] | ||||||||||||||
Auto Finance Income [Line Items] | ||||||||||||||
Item as percent of total average managed receivables | 4.70% | [1] | 5.10% | [1] | 5.60% | [1] | ||||||||
[1] | Percent of total average managed receivables. |
Auto_Loan_Receivables_Auto_Loa
Auto Loan Receivables (Auto Loan Receivables, Net) (Details) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | ||
Non-recourse notes payable | $8,470,000,000 | $7,250,000,000 | |||
Total ending managed receivables | 8,458,700,000 | [1] | 7,184,400,000 | [1] | |
Accrued interest and fees | 31,200,000 | 26,300,000 | |||
Other | 27,300,000 | 7,000,000 | |||
Less allowance for loan losses | -81,700,000 | -69,900,000 | -57,300,000 | ||
Auto loan receivables, net | 8,435,504,000 | 7,147,848,000 | |||
Warehouse Facilities [Member] | |||||
Total ending managed receivables | 986,000,000 | 879,000,000 | |||
Term Securitizations [Member] | |||||
Total ending managed receivables | 7,226,500,000 | 6,145,500,000 | |||
Other Receivables [Member] | |||||
Total ending managed receivables | $246,200,000 | [2] | $159,900,000 | [2] | |
[1] | Classified based on credit grade assigned when customers were initially approved for financing. | ||||
[2] | Other receivables includes receivables not funded through the warehouse facilities or term securitizations. |
Auto_Loan_Receivables_Ending_M
Auto Loan Receivables (Ending Managed Receivables By Major Credit Grade) (Details) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, By Major Credit Grade [Line Items] | ||||
Total ending managed receivables | $8,458.70 | [1] | $7,184.40 | [1] |
Total ending managed receivables as percentage by major credit grade | 100.00% | [2] | 100.00% | [2] |
Credit Grade A [Member] | ||||
Financing Receivable, By Major Credit Grade [Line Items] | ||||
Total ending managed receivables | 4,135.60 | [1] | 3,506 | [1] |
Total ending managed receivables as percentage by major credit grade | 48.90% | [2] | 48.80% | [2] |
Credit Grade B [Member] | ||||
Financing Receivable, By Major Credit Grade [Line Items] | ||||
Total ending managed receivables | 3,055.30 | [1] | 2,658.50 | [1] |
Total ending managed receivables as percentage by major credit grade | 36.10% | [2] | 37.00% | [2] |
Credit Grade C And Other [Member] | ||||
Financing Receivable, By Major Credit Grade [Line Items] | ||||
Total ending managed receivables | $1,267.80 | [1] | $1,019.90 | [1] |
Total ending managed receivables as percentage by major credit grade | 15.00% | [2] | 14.20% | [2] |
[1] | Classified based on credit grade assigned when customers were initially approved for financing. | |||
[2] | Percent of total ending managed receivables. |
Auto_Loan_Receivables_Allowanc
Auto Loan Receivables (Allowance For Loan Losses) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Balance as of beginning of period | $69.90 | $57.30 | ||||
Charge-offs | -155.9 | -134.3 | ||||
Recoveries | 85.4 | 74.7 | ||||
Provision for loan losses | -82.3 | -72.2 | -56.2 | |||
Balance as of end of period | $81.70 | $69.90 | $57.30 | |||
Allowance For Loan Losses [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Item as percent of total ending managed receivables | 0.97% | [1] | 0.97% | [1] | 0.97% | [1] |
[1] | Percent of total ending managed receivables. |
Auto_Loan_Receivables_Past_Due
Auto Loan Receivables (Past Due Receivables) (Details) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total ending managed receivables | $8,458.70 | [1] | $7,184.40 | [1] |
31-60 days past due | 152.1 | 126.6 | ||
61-90 days past due | 52.5 | 42.6 | ||
Greater than 90 days past due | 16.8 | 16 | ||
Total past due | $221.40 | $185.20 | ||
Past due receivables as a percentage of total ending managed receivables | 2.60% | [2] | 2.60% | [2] |
Managed Receivables [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Item as percent of total ending managed receivables | 100.00% | [2] | 100.00% | [2] |
31-60 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Past due receivables as a percentage of total ending managed receivables | 1.80% | [2] | 1.80% | [2] |
61-90 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Past due receivables as a percentage of total ending managed receivables | 0.60% | [2] | 0.60% | [2] |
Greater Than 90 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Past due receivables as a percentage of total ending managed receivables | 0.20% | [2] | 0.20% | [2] |
[1] | Classified based on credit grade assigned when customers were initially approved for financing. | |||
[2] | Percent of total ending managed receivables. |
Derivative_Instruments_And_Hed2
Derivative Instruments And Hedging Activities (Narrative) (Details) (USD $) | 12 Months Ended | |
Feb. 28, 2015 | Feb. 28, 2014 | |
Derivative [Line Items] | ||
Long-term debt, excluding current portion | $300,000,000 | $0 |
Offsetting notional amount of interest rate derivatives | 0 | 0 |
Designated As Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Derivative [Line Items] | ||
Additional reclassification as decrease from AOCL to CAF income | 10,100,000 | |
Derivative notional amount | $1,403,000,000 | $869,000,000 |
Derivative_Instruments_And_Hed3
Derivative Instruments And Hedging Activities (Fair Values Of Derivative Instruments On The Consolidated Balance Sheets) (Details) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 | ||
Derivatives, Fair Value [Line Items] | ||||
Assets | $1,201 | $0 | ||
Liabilities | -1,064 | -1,351 | ||
Designated As Hedging Instrument [Member] | Interest Rate Swaps [Member] | Other Current Assets [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Assets | 1,201 | [1] | 0 | [1] |
Liabilities | 0 | [1] | 0 | [1] |
Designated As Hedging Instrument [Member] | Interest Rate Swaps [Member] | Accounts Payable [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Assets | 0 | [2] | 0 | [2] |
Liabilities | ($1,064) | [2] | ($1,351) | [2] |
[1] | Reported in accounts payable on the consolidated balance sheets. | |||
[2] | Reported in other current assets on the consolidated balance sheets. |
Derivative_Instruments_And_Hed4
Derivative Instruments And Hedging Activities (Schedule Of Effect Of Derivative Instruments On The Consolidated Statements Of Earnings) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |||
Designated As Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Gain/(loss) recognized in AOCL | ($5,847) | [1] | ($5,286) | [1] | ($6,691) | [1] |
Loss reclassified from AOCL into CAF Income | -8,118 | [1] | -9,872 | [1] | -12,981 | [1] |
Gain recognized in CAF income | 0 | [2] | 76 | [2] | 0 | [2] |
Not Designated As Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Loss recognized in CAF income | $0 | $0 | ($2) | |||
[1] | Represents the effective portion. | |||||
[2] | Represents the ineffective portion. |
Fair_Value_Measurements_Schedu
Fair Value Measurements (Schedule Of Items Measured At Fair Value On A Recurring Basis) (Details) (USD $) | 12 Months Ended | |
Feb. 28, 2015 | Feb. 28, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market securities | $43,250,000 | $641,622,000 |
Mutual fund investments | 9,242,000 | 5,609,000 |
Derivative instruments | 1,201,000 | |
Total assets at fair value | 53,693,000 | 647,231,000 |
Percent of total assets at fair value | 100.00% | 100.00% |
Percent of total assets | 0.40% | 5.50% |
Derivative instruments | -1,064,000 | 1,351,000 |
Total liabilities at fair value | -1,064,000 | 1,351,000 |
Percent of total liabilities | 0.00% | 0.00% |
Fair Value, Equity, Level 1 to Level 2 Transfers, Description | 0 | 0 |
Restricted Investments, at Fair Value | 336,800,000 | 291,800,000 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market securities | 43,250,000 | 641,622,000 |
Mutual fund investments | 9,242,000 | 5,609,000 |
Derivative instruments | 0 | |
Total assets at fair value | 52,492,000 | 647,231,000 |
Percent of total assets at fair value | 97.80% | 100.00% |
Percent of total assets | 0.40% | 5.50% |
Derivative instruments | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Percent of total liabilities | 0.00% | 0.00% |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market securities | 0 | 0 |
Mutual fund investments | 0 | 0 |
Derivative instruments | 1,201,000 | |
Total assets at fair value | 1,201,000 | 0 |
Percent of total assets at fair value | 2.20% | 0.00% |
Percent of total assets | 0.00% | 0.00% |
Derivative instruments | -1,064,000 | 1,351,000 |
Total liabilities at fair value | ($1,064,000) | $1,351,000 |
Percent of total liabilities | 0.00% | 0.00% |
Property_And_Equipment_Schedul
Property And Equipment (Schedule Of Property And Equipment) (Details) (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $2,685,244,000 | $2,383,533,000 | |
Less accumulated depreciation and amortization | 822,706,000 | 730,556,000 | |
Property and equipment, net | 1,862,538,000 | 1,652,977,000 | |
Accumulated amortization of Capital leases | 400,000 | 300,000 | |
Depreciation Expense | 105,700,000 | 90,400,000 | 82,300,000 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 397,097,000 | 346,518,000 | |
Land Held For Sale [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 1,191,000 | 1,050,000 | |
Land Held For Development [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 151,306,000 | 170,387,000 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 1,389,063,000 | 1,244,772,000 | |
Capital Leases [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 1,739,000 | 1,739,000 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 146,140,000 | 129,186,000 | |
Furniture, Fixtures And Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 389,650,000 | 343,958,000 | |
Construction In Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $209,058,000 | $145,923,000 |
Cancellation_Reserves_Narrativ
Cancellation Reserves (Narrative) (Details) (USD $) | 12 Months Ended | |
Feb. 28, 2015 | Feb. 28, 2014 | |
Cancellation Reserves [Abstract] | ||
Cancellation reserves, current portion | $44.80 | $33.90 |
Error correction, impact to earnings | 11.9 | |
Error correction, tax effect | $7.60 | |
Error correction, impact to EPS | $0.05 |
Cancellation_Reserves_Schedule
Cancellation Reserves (Schedule Of Cancellation Reserves Accrual) (Details) (Cancellation Reserves [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 |
Cancellation Reserves [Member] | ||
Balance as of beginning of period | $72.50 | $32.70 |
Cancellations | -49.1 | -36.9 |
Provision for future cancellations | 71 | 76.7 |
Balance as of end of period | $94.40 | $72.50 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | |||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | |
Income Taxes [Abstract] | ||||
Unrecognized tax benefits, gross | $24,951,000 | $26,330,000 | $25,059,000 | $20,930,000 |
Unrecognized tax benefits that would impact effective tax rate, if recognized | 9,600,000 | 7,600,000 | 5,400,000 | |
Increase (decrease) in accrued interest | -200,000 | 300,000 | ||
Accrued interest | $1,400,000 | $1,600,000 | $1,300,000 |
Income_Taxes_Schedule_Of_Incom
Income Taxes (Schedule Of Income Tax Provision) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Income Taxes [Abstract] | |||
Current, Federal | $329,211 | $283,174 | $232,652 |
Current, State | 47,061 | 38,747 | 30,557 |
Current, Total | 376,272 | 321,921 | 263,209 |
Deferred, Federal | -3,499 | -15,129 | 4,705 |
Deferred, State | -800 | -2,056 | -847 |
Deferred, Total | -4,299 | -17,185 | 3,858 |
Income Tax Expense (Benefit), Total | $371,973 | $304,736 | $267,067 |
Income_Taxes_Schedule_Of_Effec
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Income Taxes [Abstract] | |||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
State and local income taxes, net of federal benefit | 3.40% | 3.10% | 2.90% |
Nondeductible and other items | 0.20% | 0.20% | 0.20% |
Credits | -0.20% | -0.10% | 0.00% |
Effective income tax rate | 38.40% | 38.20% | 38.10% |
Income_Taxes_Schedule_Of_Tempo
Income Taxes (Schedule Of Temporary Differences Resulting In Deferred Tax Assets And Liabilities) (Details) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
Income Taxes [Abstract] | ||
Accrued expenses | $52,933 | $48,611 |
Partnership basis | 95,443 | 71,503 |
Stock compensation | 63,148 | 60,158 |
Derivatives | 4,010 | 4,896 |
Capital loss carry forward | 1,597 | 1,296 |
Total gross deferred tax assets | 217,131 | 186,464 |
Less: valuation allowance | -1,597 | -1,296 |
Net gross deferred tax assets | 215,534 | 185,168 |
Prepaid expenses | 17,935 | 13,991 |
Property and equipment | 14,816 | 3,737 |
Inventory | 7,045 | 7,375 |
Total gross deferred tax liabilities | 39,796 | 25,103 |
Net deferred tax asset | $175,738 | $160,065 |
Income_Taxes_Schedule_Of_Recon
Income Taxes (Schedule Of Reconciliation Of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Income Taxes [Abstract] | |||
Balance at beginning of year | $26,330 | $25,059 | $20,930 |
Increases for tax positions of prior years | 1,549 | 1,523 | 1,685 |
Decreases for tax positions of prior years | -5,999 | -4,658 | -596 |
Increases based on tax positions related to the current year | 5,467 | 5,960 | 7,491 |
Settlements | -612 | -809 | -4,136 |
Lapse of statute | -1,784 | -745 | -315 |
Balance at end of year | $24,951 | $26,330 | $25,059 |
Benefit_Plans_Narrative_Detail
Benefit Plans (Narrative) (Details) (USD $) | 12 Months Ended | |||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected contributions to the pension plan in fiscal 2016 | $0 | |||
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated future amortization of actuarial losses | 1,900,000 | |||
Pension Plan [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets target allocation | 75.00% | |||
Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets target allocation | 25.00% | |||
Restoration Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected contributions to the pension plan in fiscal 2016 | 462,000 | |||
Estimated future amortization of actuarial losses | 0 | |||
Retirement Savings Plan 401K [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total cost for company contributions | 27,900,000 | 25,000,000 | 23,100,000 | |
Retirement Restoration Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Retirement restoration plan cost | 1,000,000 | 1,100,000 | 400,000 | |
Executive Deferred Compensation Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Executive deferred compensation plan cost | 900,000 | $600,000 | $400,000 |
Benefit_Plans_Benefit_Plan_Inf
Benefit Plans (Benefit Plan Information) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Obligation at beginning of year | $187,861 | $186,939 | |
Interest cost | 8,485 | 8,016 | 7,757 |
Actuarial loss (gain) | 35,829 | -4,177 | |
Benefits paid | -2,934 | -2,917 | |
Obligation at end of year | 229,241 | 187,861 | 186,939 |
Plan assets at beginning of year | 124,712 | 107,968 | |
Actual return on plan assets | 10,732 | 19,204 | |
Employer contributions | 2,739 | 457 | |
Plan assets at end of year | 135,249 | 124,712 | 107,968 |
Funded status recognized | -93,992 | -63,149 | |
Current liability | -462 | -451 | |
Noncurrent liability | -93,530 | -62,698 | |
Net amount recognized | -93,992 | -63,149 | |
Accumulated benefit obligation | 229,241 | 187,861 | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Obligation at beginning of year | 177,674 | 177,531 | |
Interest cost | 8,032 | 7,583 | 7,299 |
Actuarial loss (gain) | 34,989 | -4,980 | |
Benefits paid | -2,506 | -2,460 | |
Obligation at end of year | 218,189 | 177,674 | 177,531 |
Plan assets at beginning of year | 124,712 | 107,968 | |
Actual return on plan assets | 10,732 | 19,204 | |
Employer contributions | 2,311 | 0 | |
Plan assets at end of year | 135,249 | 124,712 | 107,968 |
Funded status recognized | -82,940 | -52,962 | |
Current liability | 0 | 0 | |
Noncurrent liability | -82,940 | -52,962 | |
Net amount recognized | -82,940 | -52,962 | |
Accumulated benefit obligation | 218,189 | 177,674 | |
Restoration Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Obligation at beginning of year | 10,187 | 9,408 | |
Interest cost | 453 | 433 | 458 |
Actuarial loss (gain) | 840 | 803 | |
Benefits paid | -428 | -457 | |
Obligation at end of year | 11,052 | 10,187 | 9,408 |
Plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 428 | 457 | |
Plan assets at end of year | 0 | 0 | 0 |
Funded status recognized | -11,052 | -10,187 | |
Current liability | -462 | -451 | |
Noncurrent liability | -10,590 | -9,736 | |
Net amount recognized | -11,052 | -10,187 | |
Accumulated benefit obligation | $11,052 | $10,187 |
Benefit_Plans_Assumptions_Used
Benefit Plans (Assumptions Used To Determine Benefit Obligations) (Details) | Feb. 28, 2015 | Feb. 28, 2014 | ||
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 4.00% | 4.55% | ||
Restoration Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 4.00% | [1] | 4.55% | [1] |
Restoration Plan [Member] | Post-2004 Lump Sum Payment Assumption [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 4.50% | 4.50% | ||
[1] | For the restoration plan, the discount rate presented is applied to the pre-2004 annuity amounts. A rate of 4.50% is assumed for the post-2004 lump sum amounts paid from the plan for fiscal 2015 and fiscal 2014. |
Benefit_Plans_Schedule_Of_Fair
Benefit Plans (Schedule Of Fair Value Of Plan Assets) (Details) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | ||
In Thousands, unless otherwise specified | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total | $135,249 | $124,712 | $107,968 | ||
Level 1 [Member] | Investment Receivables, Net [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total | -58 | -59 | |||
Equity Securities [Member] | Level 1 [Member] | Mutual Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total | 84,303 | [1] | 78,576 | [1] | |
Equity Securities [Member] | Level 2 [Member] | Collective Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total | 1,341 | [2] | 1,046 | [2] | |
Equity Securities [Member] | U.S. Entities [Member] | Level 1 [Member] | Mutual Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan assets target allocation | 95.00% | 95.00% | |||
Equity Securities [Member] | U.S. Entities [Member] | Level 2 [Member] | Collective Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan assets target allocation | 100.00% | 100.00% | |||
Equity Securities [Member] | Non-U.S. Entities [Member] | Level 1 [Member] | Mutual Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan assets target allocation | 5.00% | 5.00% | |||
Equity Securities b International [Member] | Level 1 [Member] | Mutual Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total | 17,114 | [3] | 15,649 | [3] | |
Equity Securities b International [Member] | Non-U.S. Entities [Member] | Level 1 [Member] | Mutual Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan assets target allocation | 100.00% | 100.00% | |||
Fixed Income Securities [Member] | Level 1 [Member] | Mutual Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total | $32,549 | [4] | $29,500 | [4] | |
Fixed Income Securities [Member] | U.S. Entities [Member] | Level 1 [Member] | Mutual Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan assets target allocation | 85.00% | 90.00% | |||
Fixed Income Securities [Member] | Non-U.S. Entities [Member] | Level 1 [Member] | Mutual Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan assets target allocation | 15.00% | 10.00% | |||
[1] | Includes large-, mid- and small-cap companies primarily from diverse U.S. industries including pharmaceutical, bank, oil and gas, retail and computer sectors; approximately 95% of securities relate to U.S. entities and 5% of securities relate to non-U.S. entities as of FebruaryB 28,B 2015 (95% and 5%, respectively, as of February 28, 2014) . | ||||
[2] | Includes pooled funds representing short-term instruments that include governments, their agencies and corporations and large-, mid- and small-cap companies primarily from the U.S. bank sector; nearly 100% of securities relate to U.S. entities as of February 28, 2015 (nearly 100% as of February 28, 2014). | ||||
[3] | Consists of equity securities of primarily foreign corporations from diverse industries including bank, pharmaceutical, insurance, telecommunication, food, and oil and gas sectors; 100% of securities relate to non-U.S. entities as of FebruaryB 28,B 2015 (100% relate to non-U.S. entities, as of February 28, 2014). | ||||
[4] | Includes debt securities of U.S. and foreign governments, their agencies and corporations, and diverse investments in mortgage-backed securities and banks; approximately 85% of securities relate to U.S. entities and 15% of securities relate to non-U.S. entities as of February 28, 2015 (90% and 10%, respectively, as of February 28, 2014). |
Benefit_Plans_Estimated_Future
Benefit Plans (Estimated Future Benefit Payments) (Details) (USD $) | Feb. 28, 2015 |
In Thousands, unless otherwise specified | |
Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal 2016 | $2,500 |
Fiscal 2017 | 2,798 |
Fiscal 2018 | 3,097 |
Fiscal 2019 | 3,474 |
Fiscal 2020 | 3,867 |
Fiscal 2021 to 2025 | 26,563 |
Restoration Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal 2016 | 462 |
Fiscal 2017 | 474 |
Fiscal 2018 | 482 |
Fiscal 2019 | 482 |
Fiscal 2020 | 492 |
Fiscal 2021 to 2025 | $2,904 |
Benefit_Plans_Components_Of_Ne
Benefit Plans (Components Of Net Pension Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $8,485 | $8,016 | $7,757 |
Expected return on plan assets | -9,030 | -7,916 | -7,591 |
Recognized actuarial loss | 1,361 | 1,674 | 1,200 |
Net pension expense | 816 | 1,774 | 1,366 |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 8,032 | 7,583 | 7,299 |
Expected return on plan assets | -9,030 | -7,916 | -7,591 |
Recognized actuarial loss | 1,361 | 1,674 | 1,200 |
Net pension expense | 363 | 1,341 | 908 |
Restoration Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 453 | 433 | 458 |
Expected return on plan assets | 0 | 0 | 0 |
Recognized actuarial loss | 0 | 0 | 0 |
Net pension expense | $453 | $433 | $458 |
Benefit_Plans_Changes_Recogniz
Benefit Plans (Changes Recognized In Accumulated Other Comprehensive Loss) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain) loss | $34,126 | ($15,465) |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain) loss | 33,286 | -16,268 |
Restoration Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain) loss | $840 | $803 |
Benefit_Plans_Assumptions_Used1
Benefit Plans (Assumptions Used To Determine Net Pension Expense) (Details) | 12 Months Ended | |||||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | ||||
Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount rate | 4.55% | [1] | 4.30% | [1] | 4.75% | [1] |
Expected rate of return on plan assets | 7.75% | 7.75% | 7.75% | |||
Restoration Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount rate | 4.55% | [1] | 4.30% | [1] | 4.75% | [1] |
Expected rate of return on plan assets | 0.00% | 0.00% | 0.00% | |||
Restoration Plan [Member] | Post-2004 Lump Sum Payment Assumption [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount rate | 4.50% | [1] | 4.50% | [1] | 4.50% | [1] |
[1] | For the restoration plan, the discount rate presented is applied to the pre-2004 annuity amounts. A rate of 4.50% is assumed for post-2004 lump sum amounts paid from the plan for fiscal 2015, fiscal 2014 and fiscal 2013. |
Debt_Narrative_Details
Debt (Narrative) (Details) (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Debt Instrument [Line Items] | |||
Capitalized interest | $8,900,000 | $0 | $0 |
Non-recourse notes payable | 8,470,000,000 | 7,250,000,000 | |
Long-term debt, excluding current portion | 300,000,000 | 0 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity of revolving credit facility | 1,000,000,000 | ||
Debt, Weighted Average Interest Rate | 1.60% | 1.50% | 1.80% |
Revolving credit facility, expiration date | 1-Aug-16 | ||
Revolving Credit Facility, Remaining Borrowing Capacity | 989,000,000 | ||
Revolving Credit Facility, Increase (Decrease) | 300,000,000 | ||
Warehouse Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Warehouse Facility Additional Limit | 500,000,000 | ||
Non-recourse notes payable | 986,000,000 | ||
Warehouse facilities maximum borrowing capacity | 2,300,000,000 | ||
Remaining borrowing capacity | 1,310,000,000 | ||
Finance And Capital Lease Obligation [Member] | |||
Debt Instrument [Line Items] | |||
Finance lease modifications | 11,700,000 | ||
Term Securitizations Debt [Member] | |||
Debt Instrument [Line Items] | |||
Debt maturity, end | 1-Sep-21 | ||
Non-recourse notes payable | $7,480,000,000 | ||
Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Term Loan expiraton date | 1-Nov-17 | ||
Term loan interest rate | 1.67% | ||
Warehouse Facility One [Member] | Warehouse Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Warehouse facility expiration date | 1-Jul-15 | ||
Warehouse facility additional term of facility, days | 364 days | ||
Warehouse Facility Two [Member] | Warehouse Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Warehouse facility expiration date | 1-Feb-16 | ||
Warehouse facility additional term of facility, days | 30 days | ||
Minimum [Member] | Finance And Capital Lease Obligation [Member] | |||
Debt Instrument [Line Items] | |||
Initial lease terms, in years | 15 years | ||
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Initial lease terms, in years | 20 years | ||
Maximum [Member] | Finance And Capital Lease Obligation [Member] | |||
Debt Instrument [Line Items] | |||
Initial lease terms, in years | 20 years |
Debt_Schedule_Of_Debt_Details
Debt (Schedule Of Debt) (Details) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
Debt [Abstract] | ||
Short-term revolving credit facility | $785 | $582 |
Current portion of other long-term debt | 10,000 | 0 |
Current portion of finance and capital lease obligations | 21,554 | 18,459 |
Current portion of non-recourse notes payable | 258,163 | 223,938 |
Total current debt | 290,502 | 242,979 |
Other long-term debt, noncurrent | 300,000 | 0 |
Finance and capital lease obligations, excluding current portion | 306,284 | 315,925 |
Non-recourse notes payable, excluding current portion | 8,212,466 | 7,024,506 |
Total debt, excluding current portion | 8,818,750 | 7,340,431 |
Total debt | $9,109,252 | $7,583,410 |
Stock_And_StockBased_Incentive2
Stock And Stock-Based Incentive Plans (Narrative) (Details) (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Stock and Stock-Based Incentive Plans | |||
Capitalized share-based compensation | $0 | $0 | $0 |
FY 2013 Share Repurchase Authorizations Member | |||
Stock and Stock-Based Incentive Plans | |||
Share repurchase, authorized amount | 800,000,000 | ||
March 2014 Authorization [Member] | |||
Stock and Stock-Based Incentive Plans | |||
Share repurchase, authorization expiration | 31-Dec-15 | ||
October 2014 Authorization [Member] | |||
Stock and Stock-Based Incentive Plans | |||
Share repurchase, authorization expiration | 31-Dec-16 | ||
Preferred Stock [Member] | |||
Stock and Stock-Based Incentive Plans | |||
Preferred Stock, par value | $20 | ||
Preferred shares authorized | 20,000,000 | ||
Preferred Stock, Shares Outstanding | 0 | ||
Share Repurchase Program [Member] | |||
Stock and Stock-Based Incentive Plans | |||
Shares repurchased during the period | 17,511,000 | 6,859,500 | 5,762,000 |
Share repurchase, average purchase price per share | $52.13 | $44.61 | $36.77 |
Share repurchase, amount remaining for repurchase | 2,369,300,000 | 282,100,000 | 588,100,000 |
Share Repurchase Program [Member] | FY 2013 Share Repurchase Authorizations Member | |||
Stock and Stock-Based Incentive Plans | |||
Share repurchase, authorized amount | 800,000,000 | ||
Share Repurchase Program [Member] | FY 2015 Share Repurchase Authorization Member | |||
Stock and Stock-Based Incentive Plans | |||
Share repurchase, authorized amount | 3,000,000,000 | ||
Share Repurchase Program [Member] | March 2014 Authorization [Member] | |||
Stock and Stock-Based Incentive Plans | |||
Share repurchase, authorized amount | 1,000,000,000 | ||
Share Repurchase Program [Member] | October 2014 Authorization [Member] | |||
Stock and Stock-Based Incentive Plans | |||
Share repurchase, authorized amount | 2,000,000,000 | ||
Stock Compensation Plan [Member] | |||
Stock and Stock-Based Incentive Plans | |||
Common stock, shares authorized | 50,200,000 | ||
Common shares reserved for future grants | 8,394,601 | ||
Stock Option [Member] | |||
Stock and Stock-Based Incentive Plans | |||
Incentive stock option grants in period | 0 | ||
Options granted, Number of Shares | 2,056,789 | 1,605,149 | 2,252,124 |
Cash received as a result of stock option exercises | 89,800,000 | 45,100,000 | 71,700,000 |
Total intrinsic value of options exercised | 153,300,000 | 62,500,000 | 68,000,000 |
Related tax benefits | 61,700,000 | 25,100,000 | 27,200,000 |
Options granted, weighted average grant date fair value | $13.28 | $15.59 | $12.67 |
Unrecognized compensation costs related to nonvested options/MSU/RSA | 31,600,000 | ||
Weighted average period, years | 2 years 1 month 6 days | ||
Stock Option [Member] | Minimum [Member] | |||
Stock and Stock-Based Incentive Plans | |||
Vesting period, in years | 1 year | ||
Stock Option [Member] | Maximum [Member] | |||
Stock and Stock-Based Incentive Plans | |||
Vesting period, in years | 4 years | ||
Years until expiration | 10 years | ||
Cash-Settled Restricted Stock Units [Member] | |||
Stock and Stock-Based Incentive Plans | |||
Vesting period, in years | 3 years | ||
Restricted stock awards granted, number of shares | 587,990 | 541,819 | 644,232 |
Restricted stock granted, weighted average grant date fair value | $44.96 | $42.68 | $31.76 |
Related tax benefits | 8,800,000 | ||
Payment related to restricted stock units vested during the period | 21,800,000 | ||
Awards outstanding | 1,530,000 | 1,531,000 | |
Cash-Settled Restricted Stock Units [Member] | Minimum [Member] | |||
Stock and Stock-Based Incentive Plans | |||
Cash payment per RSU, percentage | 75.00% | ||
Cash-Settled Restricted Stock Units [Member] | Maximum [Member] | |||
Stock and Stock-Based Incentive Plans | |||
Cash payment per RSU, percentage | 200.00% | ||
Stock-Settled Restricted Stock Units [Member] | |||
Stock and Stock-Based Incentive Plans | |||
Vesting period, in years | 3 years | ||
Conversion ratio, number of final trading days in vesting period | 40 days | ||
Restricted stock awards granted, number of shares | 249,801 | 237,660 | 348,551 |
Restricted stock granted, weighted average grant date fair value | $55.48 | $52.02 | $40.33 |
Related tax benefits | 8,100,000 | ||
Unrecognized compensation costs related to nonvested options/MSU/RSA | 13,500,000 | ||
Weighted average period, years | 1 year | ||
Awards outstanding | 774,000 | 852,000 | |
Stock-Settled Restricted Stock Units [Member] | Minimum [Member] | |||
Stock and Stock-Based Incentive Plans | |||
MSUs converted to common stock | 0 | ||
Stock-Settled Restricted Stock Units [Member] | Maximum [Member] | |||
Stock and Stock-Based Incentive Plans | |||
MSUs converted to common stock | 2 | ||
Restricted Stock Awards [Member] | |||
Stock and Stock-Based Incentive Plans | |||
Restricted stock awards granted, number of shares | 22,860 | ||
Restricted stock granted, weighted average grant date fair value | $51.18 | ||
Unrecognized compensation costs related to nonvested options/MSU/RSA | 100,000 | ||
Weighted average period, years | 0 years 3 months 18 days | ||
Awards outstanding | 0 | 0 | |
Restricted Stock Awards [Member] | Minimum [Member] | |||
Stock and Stock-Based Incentive Plans | |||
Vesting period, in years | 1 year | ||
Employee Stock Purchase Plan [Member] | |||
Stock and Stock-Based Incentive Plans | |||
Common stock, shares authorized | 8,000,000 | ||
Associate contribution limit | 10.00% | ||
Company match | $0.15 | ||
Shares remained available under the purchase plan | 3,540,283 | ||
Shares purchased on the open market | 184,390 | 188,797 | 251,667 |
Average price per share under purchases plan | $52.18 | $47.35 | $32.05 |
Employee Stock Purchase Plan [Member] | Maximum [Member] | |||
Stock and Stock-Based Incentive Plans | |||
Associate contribution limit, value | $7,500 |
Stock_And_StockBased_Incentive3
Stock And Stock-Based Incentive Plans (Schedule Of Common Stoc Repurchases) (Details) (Share Repurchase Program [Member], USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Share Repurchase Program [Member] | |||
Number of shares repurchased | 17,511,000 | 6,859,500 | 5,762,000 |
Average cost per share | $52.13 | $44.61 | $36.77 |
Available for repurchase, as of end of year | $2,369.30 | $282.10 | $588.10 |
Stock_And_StockBased_Incentive4
Stock And Stock-Based Incentive Plans (Composition Of Share-Based Compensation Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense, before income taxes | $83,154 | $67,670 | $63,174 |
Cost Of Sales [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense, before income taxes | 4,236 | 3,200 | 3,010 |
CAF Income [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense, before income taxes | 5,898 | 2,983 | 2,521 |
Selling, General And Administrative Expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense, before income taxes | $73,020 | $61,487 | $57,643 |
Stock_And_StockBased_Incentive5
Stock And Stock-Based Incentive Plans (Composition Of Share-Based Compensation Expense - By Grant Type) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense, before income taxes | $83,154 | $67,670 | $63,174 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense, before income taxes | 28,954 | 23,914 | 24,853 |
Cash-Settled Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense, before income taxes | 38,539 | 29,551 | 24,268 |
Stock-Settled Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense, before income taxes | 13,299 | 12,515 | 12,441 |
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense, before income taxes | 1,274 | 1,190 | 1,062 |
Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense, before income taxes | 1,088 | 0 | 0 |
Stock Grants To Non-Employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense, before income taxes | $0 | $500 | $550 |
Stock_And_StockBased_Incentive6
Stock And Stock-Based Incentive Plans (Stock Option Activity) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Outstanding as of February 28, 2015, Weighted Average Exercise Price | $35.59 | ||
Outstanding as of February 28, 2015, Weighted Average Remaining Contractual Life (Years) | 4 years 3 months 18 days | ||
Stock Option [Member] | |||
Outstanding as of February 28, 2014, Number of Shares | 10,018,000 | ||
Options granted, Number of Shares | 2,056,789 | 1,605,149 | 2,252,124 |
Options exercised, Number of Shares | -4,390,000 | ||
Options forfeited or expired, Number of Shares | -40,000 | ||
Outstanding as of February 28, 2015, Number of Shares | 7,645,000 | 10,018,000 | |
Exercisable as of February 28, 2015, Number of Shares | 3,597,000 | ||
Outstanding as of February 28, 2014, Weighted Average Exercise Price | $27.02 | ||
Options granted, Weighted Average Exercise Price | $45.08 | ||
Options exercised, Weighted Average Exercise Price | $20.46 | ||
Options forfeited or expired, Weighted Average Exercise Price | $37.44 | ||
Outstanding as of February 28, 2015, Weighted Average Exercise Price | $35.59 | $27.02 | |
Exercisable as of February 28, 2015, Weighted Average Exercise Price | $29.86 | ||
Outstanding as of February 28, 2015, Weighted Average Remaining Contractual Life (Years) | 4 years 3 months 18 days | ||
Exercisable as of February 28, 2015, Weighted Average Remaining Contractual Life (Years) | 3 years 3 months 18 days | ||
Outstanding as of February 28, 2015, Aggregate Intrinsic Value | $240,941 | ||
Exercisable as of February 28, 2015, Aggregate Intrinsic Value | $133,975 |
Stock_And_StockBased_Incentive7
Stock And Stock-Based Incentive Plans (Outstanding Stock Options) (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options Outstanding, Number of Shares | 7,645 | |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 4 years 3 months 18 days | |
Options Outstanding, Weighted Average Exercise Price | $35.59 | |
Options Exercisable, Number of Shares | 3,597 | |
Options Exercisable, Weighted Average Exercise Price | $29.86 | |
$11.43 To $14.49 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, lower range | $11.43 | |
Range of Exercise Prices, upper range | $14.49 | |
Options Outstanding, Number of Shares | 458 | |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 1 year | |
Options Outstanding, Weighted Average Exercise Price | $12.03 | |
Options Exercisable, Number of Shares | 458 | |
Options Exercisable, Weighted Average Exercise Price | $12.03 | |
$19.82 To $30.24 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, lower range | $19.82 | |
Range of Exercise Prices, upper range | $30.24 | |
Options Outstanding, Number of Shares | 723 | |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 2 years 4 months 24 days | |
Options Outstanding, Weighted Average Exercise Price | $25.46 | |
Options Exercisable, Number of Shares | 699 | |
Options Exercisable, Weighted Average Exercise Price | $25.30 | |
$31.76 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, lower range | $31.76 | |
Options Outstanding, Number of Shares | 1,732 | |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 4 years 1 month 6 days | |
Options Outstanding, Weighted Average Exercise Price | $31.76 | |
Options Exercisable, Number of Shares | 903 | |
Options Exercisable, Weighted Average Exercise Price | $31.76 | |
$32.05 To $33.11 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, lower range | $32.05 | |
Range of Exercise Prices, upper range | $33.11 | |
Options Outstanding, Number of Shares | 1,356 | |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 3 years 1 month 6 days | |
Options Outstanding, Weighted Average Exercise Price | $32.70 | |
Options Exercisable, Number of Shares | 1,036 | |
Options Exercisable, Weighted Average Exercise Price | $32.70 | |
$42.68 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, lower range | $42.68 | |
Options Outstanding, Number of Shares | 1,411 | |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 5 years 1 month 6 days | |
Options Outstanding, Weighted Average Exercise Price | $42.68 | |
Options Exercisable, Number of Shares | 399 | |
Options Exercisable, Weighted Average Exercise Price | $42.68 | |
$44.96 To $67.82 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, lower range | $44.96 | |
Range of Exercise Prices, upper range | $67.82 | |
Options Outstanding, Number of Shares | 1,965 | |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 6 years 1 month 6 days | |
Options Outstanding, Weighted Average Exercise Price | $45.12 | |
Options Exercisable, Number of Shares | 102 | |
Options Exercisable, Weighted Average Exercise Price | $45.47 | |
Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 4 years 3 months 18 days | |
Options Outstanding, Weighted Average Exercise Price | $35.59 | $27.02 |
Stock_And_StockBased_Incentive8
Stock And Stock-Based Incentive Plans (Assumptions Used To Estimate Option Values) (Details) | 12 Months Ended | |||||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | ||||
Stock And Stock-Based Incentive Plans [Abstract] | ||||||
Dividend yield | 0.00% | 0.00% | 0.00% | |||
Expected volatility factor, Minimum | 25.20% | [1] | 27.90% | [1] | 31.10% | [1] |
Expected volatility factor, Maximum | 32.70% | [1] | 46.80% | [1] | 51.40% | [1] |
Weighted average expected volatility | 31.80% | 44.70% | 49.40% | |||
Risk-free interest rate, Minimum | 0.01% | [2] | 0.02% | [2] | 0.02% | [2] |
Risk-free interest rate, Maximum | 2.70% | [2] | 2.60% | [2] | 2.00% | [2] |
Expected term (in years) | 4 years 8 months 12 days | [3] | 4 years 8 months 12 days | [3] | 4 years 8 months 12 days | [3] |
[1] | Measured using historical daily price changes of our stock for a period corresponding to the term of the options and the implied volatility derived from the market prices of traded options on our stock. | |||||
[2] | Based on the U.S. Treasury yield curve at the time of grant. | |||||
[3] | Represents the estimated number of years that options will be outstanding prior to exercise. |
Stock_And_StockBased_Incentive9
Stock And Stock-Based Incentive Plans (Cash-Settled Restricted Stock Unit Activity) (Details) (Cash-Settled Restricted Stock Units [Member], USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Cash-Settled Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding at beginning of year, Number of Shares or Units | 1,531,000 | ||
Stock units granted, Number of Units | 587,990 | 541,819 | 644,232 |
Stock units vested and converted, Number of Units | -474,000 | ||
Stock units cancelled, Number of Units | -115,000 | ||
Outstanding at end of year, number of shares or Units | 1,530,000 | 1,531,000 | |
Outstanding as of February 28, 2014, Weighted Average Grant Date Fair Value | $35.68 | ||
Restricted stock granted, weighted average grant date fair value | $44.96 | $42.68 | $31.76 |
Stock units vested and converted, Weighted Average Grant Date Fair Value | $32.93 | ||
Stock units cancelled, Weighted Average Grant Date Fair Value | $39.55 | ||
Outstanding as of February 28, 2015, Weighted Average Grant Date Fair Value | $39.81 | $35.68 |
Recovered_Sheet1
Stock And Stock-Based Incentive Plans (Expected Cash Settlement Range Upon Restricted Stock Unit Vesting) (Details) (USD $) | Feb. 28, 2015 | |
In Thousands, unless otherwise specified | ||
Minimum [Member] | ||
Fiscal 2016 | $12,180 | [1] |
Fiscal 2017 | 13,950 | [1] |
Fiscal 2018 | 16,137 | [1] |
Total expected cash settlements | 42,267 | [1] |
Maximum [Member] | ||
Fiscal 2016 | 32,479 | [1] |
Fiscal 2017 | 37,199 | [1] |
Fiscal 2018 | 43,033 | [1] |
Total expected cash settlements | $112,711 | [1] |
[1] | Net of estimated forfeitures. |
Recovered_Sheet2
Stock And Stock-Based Incentive Plans (Stock-Settled Restricted Stock Unit Activity) (Details) (Stock-Settled Restricted Stock Units [Member], USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Stock-Settled Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding at beginning of year, Number of Shares or Units | 852,000 | ||
Stock units granted, Number of Units | 249,801 | 237,660 | 348,551 |
Stock units vested and converted, Number of Units | -302,000 | ||
Stock units cancelled, Number of Units | -26,000 | ||
Outstanding at end of year, number of shares or Units | 774,000 | 852,000 | |
Outstanding as of February 28, 2014, Weighted Average Grant Date Fair Value | $45.26 | ||
Restricted stock granted, weighted average grant date fair value | $55.48 | $52.02 | $40.33 |
Stock units vested and converted, Weighted Average Grant Date Fair Value | $45.69 | ||
Stock units cancelled, Weighted Average Grant Date Fair Value | $48.10 | ||
Outstanding as of February 28, 2015, Weighted Average Grant Date Fair Value | $48.30 | $45.26 |
Net_Earnings_Per_Share_Narrati
Net Earnings Per Share (Narrative) (Details) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Net Earnings Per Share [Abstract] | |||
Anti-dilutive securities not included in calculation of diluted net earnings per share | 1,409,809 | 1,231,382 | 3,877,165 |
Net_Earnings_Per_Share_Basic_A
Net Earnings Per Share (Basic And Dilutive Net Earnings Per Share Reconciliations) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Schedule of Basic and Dilutive Net Earnings Per Share Reconciliation [Line Items] | |||||||||||
Net earnings | $143,138 | $130,049 | $154,518 | $169,653 | $99,209 | $106,452 | $140,274 | $146,651 | $597,358 | $492,586 | $434,284 |
Weighted average common shares outstanding | 215,617 | 223,589 | 228,095 | ||||||||
Weighted average common shares and dilutive potential common shares | 218,691 | 227,584 | 231,823 | ||||||||
Basic net earnings per share | $0.68 | $0.61 | $0.71 | $0.77 | $0.45 | $0.48 | $0.63 | $0.65 | $2.77 | $2.20 | $1.90 |
Diluted net earnings per share | $0.67 | $0.60 | $0.70 | $0.76 | $0.44 | $0.47 | $0.62 | $0.64 | $2.73 | $2.16 | $1.87 |
Stock Options [Member] | |||||||||||
Schedule of Basic and Dilutive Net Earnings Per Share Reconciliation [Line Items] | |||||||||||
Dilutive potential common shares | 2,369 | 3,255 | 3,161 | ||||||||
Stock-Settled Restricted Stock Units [Member] | |||||||||||
Schedule of Basic and Dilutive Net Earnings Per Share Reconciliation [Line Items] | |||||||||||
Dilutive potential common shares | 705 | 740 | 567 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 |
Accumulated Other Comprehensive Loss [Abstract] | ||
Deferred tax | $39 | $27.70 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss (Accumulated Other Comprehensive Loss) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Schedule of Accumulated Other Comprehensive Loss [Line Items] | |||
Balance | ($46,271) | ($59,808) | ($62,459) |
Other comprehensive income before reclassifications | -24,893 | 6,497 | -5,971 |
Amounts reclassified from accumulated other comprehensive loss | 5,773 | 7,040 | 8,622 |
Other comprehensive income (loss) | -19,120 | 13,537 | 2,651 |
Balance | -65,391 | -46,271 | -59,808 |
Net Unrecognized Actuarial Losses [Member] | |||
Schedule of Accumulated Other Comprehensive Loss [Line Items] | |||
Balance | -38,715 | -49,479 | -39,774 |
Other comprehensive income before reclassifications | -21,358 | 9,713 | -10,456 |
Amounts reclassified from accumulated other comprehensive loss | 853 | 1,051 | 751 |
Other comprehensive income (loss) | -20,505 | 10,764 | -9,705 |
Balance | -59,220 | -38,715 | -49,479 |
Net Unrecognized Hedge Losses [Member] | |||
Schedule of Accumulated Other Comprehensive Loss [Line Items] | |||
Balance | -7,556 | -10,329 | -22,685 |
Other comprehensive income before reclassifications | -3,535 | -3,216 | 4,485 |
Amounts reclassified from accumulated other comprehensive loss | 4,920 | 5,989 | 7,871 |
Other comprehensive income (loss) | 1,385 | 2,773 | 12,356 |
Balance | ($6,171) | ($7,556) | ($10,329) |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Loss (Changes In and Reclassifications Out of Accumulated Other Comprehensive Loss) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |||
Actuarial gain (loss) arising during the year | ($34,126) | $15,465 | ($16,694) | |||
Tax (expense) benefit | 12,768 | -5,752 | 6,238 | |||
Actuarial gain (loss) arising during the year, net of tax | -21,358 | 9,713 | -10,456 | |||
Actuarial loss amortization reclassifications in net pension expense | 1,361 | 1,674 | 1,200 | |||
Tax expense | -508 | -623 | -449 | |||
Amortization reclassifications recognized in net pension expense, net of tax | 853 | 1,051 | 751 | |||
Net change in retirement benefit plan unrecognized actuarial losses, net of tax | -20,505 | 10,764 | -9,705 | |||
Effective portion of changes in fair value | -5,847 | -5,286 | -6,691 | |||
Tax (expense) benefit | 2,312 | [1] | 2,070 | [1] | 11,176 | [1] |
Effective portion of changes in fair value, net of tax | -3,535 | -3,216 | 4,485 | |||
Reclassifications to CarMax Auto Finance income | 8,118 | 9,872 | 12,981 | |||
Tax expense | -3,198 | -3,883 | -5,110 | |||
Reclassifications to CarMax Auto Finance income, net of tax | 4,920 | 5,989 | 7,871 | |||
Net change in cash flow hedge unrecognzied losses, net of tax | 1,385 | 2,773 | 12,356 | |||
Other comprehensive income (loss), net of taxes | -19,120 | 13,537 | 2,651 | |||
Tax benefit adjustment | 8,518 | |||||
Cost Of Sales [Member] | ||||||
Actuarial loss amortization reclassifications in net pension expense | 558 | 669 | 483 | |||
Carmax Auto Finance [Member] | ||||||
Actuarial loss amortization reclassifications in net pension expense | 31 | 38 | 28 | |||
Selling, General And Administrative Expenses [Member] | ||||||
Actuarial loss amortization reclassifications in net pension expense | $772 | $967 | $689 | |||
[1] | The year ended February 28, 2013, includes a tax benefit adjustment of $8,518 related to prior years. |
Lease_Commitments_Narrative_De
Lease Commitments (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Leased Assets [Line Items] | |||
Operating leases rent expense | $44.60 | $43.60 | $42.80 |
Minimum [Member] | |||
Leased Assets [Line Items] | |||
Lease renewal term, years | 5 years | ||
Maximum [Member] | |||
Leased Assets [Line Items] | |||
Initial lease terms, in years | 20 years | ||
Lease renewal term, years | 20 years |
Lease_Commitments_Schedule_Of_
Lease Commitments (Schedule Of Future Minimum Lease Obligations) (Details) (USD $) | Feb. 28, 2015 |
In Thousands, unless otherwise specified | |
Lease Commitments [Abstract] | |
Fiscal 2016, Capital Leases | $333 |
Fiscal 2017, Capital Leases | 354 |
Fiscal 2018, Capital Leases | 354 |
Fiscal 2019, Capital Leases | 354 |
Fiscal 2020,Capital Leases | 354 |
Fiscal 2021 and thereafter, Capital Leases | 4,810 |
Total minimum lease payments, Capital Leases | 6,559 |
Less amounts representing interest, Capital Leases | -3,753 |
Present value of net minimum lease payments, Capital Leases | 2,806 |
Fiscal 2016, Finance Leases | 48,217 |
Fiscal 2017, Finance Leases | 42,587 |
Fiscal 2018, Finance Leases | 36,040 |
Fiscal 2019, Finance Leases | 33,526 |
Fiscal 2020, Finance Leases | 32,320 |
Fiscal 2021 and thereafter, Finance Leases | 152,642 |
Total minimum lease payments, Finance Leases | 345,332 |
Fiscal 2016, Operating Lease Commitments | 43,156 |
Fiscal 2017, Operating Lease Commitments | 41,543 |
Fiscal 2018, Operating Lease Commitments | 39,510 |
Fiscal 2019, Operating Lease Commitments | 38,743 |
Fiscal 2020, Operating Lease Commitments | 36,829 |
Fiscal 2021 and thereafter, Operating Lease Commitments | 242,892 |
Total minimum lease payments, Operating Lease Commitments | $442,673 |
Commitments_And_Contingencies_
Commitments And Contingencies (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 |
lawsuit | ||
Commitments And Contingencies [Abstract] | ||
Number of claims | 2 | |
Minimum warranty period, days | 30 days | |
Liability associated with guarantee | $6.20 | $5.70 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Schedule Of Selected Quarterly Financial Data) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |||
Selected Quarterly Financial Data [Abstract] | ||||||||||||||
Net sales and operating revenues | $3,514,092 | [1] | $3,405,234 | $3,599,194 | $3,750,196 | $3,076,283 | [2] | $2,941,407 | $3,245,552 | $3,311,057 | $14,268,716 | $12,574,299 | [2] | $10,962,818 |
Gross profit | 475,837 | 446,620 | 463,339 | 501,731 | 384,141 | 381,721 | 434,743 | 448,096 | 1,887,527 | 1,648,701 | 1,464,362 | |||
CarMax Auto Finance income | 90,383 | 89,722 | 92,574 | 94,615 | 80,821 | 83,905 | 84,422 | 87,019 | 367,294 | 336,167 | 299,267 | |||
Selling, general and administrative expenses | 330,009 | 316,632 | 297,638 | 313,446 | 297,454 | 284,366 | 283,206 | 290,189 | 1,257,725 | 1,155,215 | 1,031,034 | |||
Net earnings | $143,138 | $130,049 | $154,518 | $169,653 | $99,209 | $106,452 | $140,274 | $146,651 | $597,358 | $492,586 | $434,284 | |||
Basic net earnings per share | $0.68 | $0.61 | $0.71 | $0.77 | $0.45 | $0.48 | $0.63 | $0.65 | $2.77 | $2.20 | $1.90 | |||
Diluted net earnings per share | $0.67 | $0.60 | $0.70 | $0.76 | $0.44 | $0.47 | $0.62 | $0.64 | $2.73 | $2.16 | $1.87 | |||
[1] | During the fourth quarter of fiscal 2015, we capitalized $8.9 million of interest expense, of which $6.9 million, or $0.02 per share, related to earlier quarters in fiscal 2015. | |||||||||||||
[2] | As disclosed in Note 8, during the fourth quarter of fiscal 2014, we corrected our accounting related to cancellation reserves for our ESP and GAP products. The correction of the out of period error consisted of $0.02 per share pertaining to earlier quarters in fiscal 2014 and $0.05 per share pertaining to fiscal 2013 and fiscal 2012. |