CARMAX INC, 10-Q filed on 1/5/2024
Quarterly Report
v3.23.4
Document And Entity Information - shares
 9 Months Ended
Nov. 30, 2023
Jan. 03, 2024
Entity Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Nov. 30, 2023  
Document Transition Report false  
Entity File Number 1-31420  
Entity Registrant Name CARMAX, INC.  
Entity Central Index Key 0001170010  
Current Fiscal Year End Date --02-29  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Entity Incorporation, State or Country Code VA  
Entity Tax Identification Number 54-1821055  
Entity Address, Address Line One 12800 Tuckahoe Creek Parkway  
Entity Address, City or Town Richmond,  
Entity Address, State or Province VA  
Entity Address, Postal Zip Code 23238  
City Area Code 804  
Local Phone Number 747-0422  
Title of 12(b) Security Common Stock  
Trading Symbol KMX  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   157,921,209
v3.23.4
Consolidated Statements Of Earnings - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
SALES AND OPERATING REVENUES:        
NET SALES AND OPERATING REVENUES $ 6,148,538 $ 6,505,956 $ 20,909,437 $ 23,962,380
TOTAL COST OF SALES 5,535,675 5,929,268 18,782,419 21,773,156
GROSS PROFIT  612,863 576,688 2,127,018 2,189,224
CARMAX AUTO FINANCE INCOME  148,659 152,196 421,004 539,538
Selling, general and administrative expenses 559,962 591,727 1,705,493 1,914,508
Depreciation, Depletion and Amortization, Nonproduction 60,623 57,377 177,859 170,717
Interest expense 31,265 30,150 93,316 91,670
Other income (886) (363) (4,730) (2,303)
Earnings before income taxes 110,558 49,993 576,084 554,170
Income tax provision 28,555 12,413 147,148 138,420
NET EARNINGS  $ 82,003 $ 37,580 $ 428,936 $ 415,750
WEIGHTED AVERAGE COMMON SHARES:        
Basic, shares 158,446 158,003 158,347 159,044
Diluted, shares 158,799 158,536 158,866 160,195
NET EARNINGS PER SHARE:        
Basic (in dollars per share) $ 0.52 $ 0.24 $ 2.71 $ 2.61
Diluted (in dollars per share) $ 0.52 $ 0.24 $ 2.70 $ 2.60
Used vehicle sales        
SALES AND OPERATING REVENUES:        
NET SALES AND OPERATING REVENUES $ 4,832,077 $ 5,204,584 $ 16,424,691 $ 18,503,159
TOTAL COST OF SALES 4,434,165 4,801,790 15,060,045 17,041,898
Wholesale vehicle sales        
SALES AND OPERATING REVENUES:        
NET SALES AND OPERATING REVENUES 1,165,204 1,152,207 4,001,542 4,959,050
TOTAL COST OF SALES 1,042,303 1,037,534 3,574,200 4,512,053
Total other sales and revenues        
SALES AND OPERATING REVENUES:        
NET SALES AND OPERATING REVENUES 151,257 149,165 483,204 500,171
TOTAL COST OF SALES $ 59,207 $ 89,944 $ 148,174 $ 219,205
NET SALES AND OPERATING REVENUES        
Percentage of Sales        
Item as a percent of net sales and operating revenues 100.00% 100.00% 100.00% 100.00%
TOTAL COST OF SALES        
Percentage of Sales        
Item as a percent of net sales and operating revenues 90.00% 91.10% 89.80% 90.90%
GROSS PROFIT         
Percentage of Sales        
Item as a percent of net sales and operating revenues 10.00% 8.90% 10.20% 9.10%
CARMAX AUTO FINANCE INCOME         
Percentage of Sales        
Item as a percent of net sales and operating revenues 2.40% 2.30% 2.00% 2.30%
Selling, general and administrative expenses        
Percentage of Sales        
Item as a percent of net sales and operating revenues 9.10% 9.10% 8.20% 8.00%
Depreciation and Amortization, Nonproduction        
Percentage of Sales        
Item as a percent of net sales and operating revenues 1.00% 0.90% 0.90% 0.70%
Interest expense        
Percentage of Sales        
Item as a percent of net sales and operating revenues 0.50% 0.50% 0.40% 0.40%
Other income        
Percentage of Sales        
Item as a percent of net sales and operating revenues 0.00% 0.00% 0.00% 0.00%
Earnings before income taxes        
Percentage of Sales        
Item as a percent of net sales and operating revenues 1.80% 0.80% 2.80% 2.30%
Income tax provision        
Percentage of Sales        
Item as a percent of net sales and operating revenues 0.50% 0.20% 0.70% 0.60%
NET EARNINGS         
Percentage of Sales        
Item as a percent of net sales and operating revenues 1.30% 0.60% 2.10% 1.70%
NET SALES AND OPERATING REVENUES | Used vehicle sales        
Percentage of Sales        
Item as a percent of net sales and operating revenues 78.60% 80.00% 78.60% 77.20%
NET SALES AND OPERATING REVENUES | Wholesale vehicle sales        
Percentage of Sales        
Item as a percent of net sales and operating revenues 19.00% 17.70% 19.10% 20.70%
NET SALES AND OPERATING REVENUES | Total other sales and revenues        
Percentage of Sales        
Item as a percent of net sales and operating revenues 2.50% 2.30% 2.30% 2.10%
TOTAL COST OF SALES | Used vehicle sales        
Percentage of Sales        
Item as a percent of net sales and operating revenues 72.10% 73.80% 72.00% 71.10%
TOTAL COST OF SALES | Wholesale vehicle sales        
Percentage of Sales        
Item as a percent of net sales and operating revenues 17.00% 15.90% 17.10% 18.80%
TOTAL COST OF SALES | Total other sales and revenues        
Percentage of Sales        
Item as a percent of net sales and operating revenues 1.00% 1.40% 0.70% 0.90%
v3.23.4
Consolidated Statements Of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Statement of Comprehensive Income [Abstract]        
NET EARNINGS $ 82,003 $ 37,580 $ 428,936 $ 415,750
Other comprehensive (loss) income, net of taxes:        
Net change in retirement benefit plan unrecognized actuarial losses 98 482 294 1,444
Net change in cash flow hedge unrecognized gains (18,028) 24,939 (37,496) 102,398
Other comprehensive income (loss), net of taxes (17,930) 25,421 (37,202) 103,842
TOTAL COMPREHENSIVE INCOME $ 64,073 $ 63,001 $ 391,734 $ 519,592
v3.23.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Nov. 30, 2023
Feb. 28, 2023
CURRENT ASSETS:    
Cash and cash equivalents $ 605,375 $ 314,758
Restricted cash from collections on auto loans receivable 483,570 470,889
Accounts receivable, net 212,406 298,783
Inventory 3,638,946 3,726,142
Other current assets 169,653 230,795
TOTAL CURRENT ASSETS  5,109,950 5,041,367
Auto loans receivable, net of allowance for loan losses of $511,924 and $507,201 as of November 30, 2023 and February 28, 2023, respectively 17,081,891 16,341,791
Property and equipment, net of accumulated depreciation of $1,782,087 and $1,614,924 as of November 30, 2023 and February 28, 2023, respectively 3,623,697 3,430,914
Deferred Income Tax Assets, Net 121,219 80,740
Operating lease assets 533,387 545,677
Goodwill 141,258 141,258
Other assets 561,848 600,989
TOTAL ASSETS  27,173,250 26,182,736
CURRENT LIABILITIES:    
Accounts payable 762,594 826,592
Accrued expenses and other current liabilities 494,365 478,964
Accrued income taxes 10,581 0
Current portion of operating lease liabilities 56,410 53,287
Current portion of long-term debt 312,744 111,859
Current portion of non-recourse notes payable 446,544 467,609
TOTAL CURRENT LIABILITIES  2,083,238 1,938,311
Long-term debt, excluding current portion 1,605,638 1,909,361
Non-recourse notes payable, excluding current portion 16,558,053 15,865,776
Operating lease liabilities, excluding current portion 509,141 523,828
Other liabilities 372,815 332,383
TOTAL LIABILITIES  21,128,885 20,569,659
Commitments and contingent liabilities
SHAREHOLDERS’ EQUITY:    
Common stock, $0.50 par value; 350,000,000 shares authorized; 158,021,407 and 158,079,033 shares issued and outstanding as of November 30, 2023 and February 28, 2023, respectively 79,011 79,040
Capital in excess of par value 1,786,924 1,713,074
Accumulated other comprehensive income 60,667 97,869
Retained earnings 4,117,763 3,723,094
TOTAL SHAREHOLDERS’ EQUITY  6,044,365 5,613,077
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY  $ 27,173,250 $ 26,182,736
v3.23.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Nov. 30, 2023
Feb. 28, 2023
Statement of Financial Position [Abstract]    
Financing Receivable, Allowance for Credit Loss $ 511,924 $ 507,201
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment $ 1,782,087 $ 1,614,924
Common Stock, Par or Stated Value Per Share $ 0.50 $ 0.50
Common Stock, Shares Authorized 350,000,000 350,000,000
Common Stock, Shares, Issued 158,021,407 158,079,033
Common stock, shares outstanding 158,021,407 158,079,033
v3.23.4
Consolidated Statements Of Cash Flows - USD ($)
$ in Thousands
 9 Months Ended
Nov. 30, 2023
Nov. 30, 2022
OPERATING ACTIVITIES:    
Net earnings $ 428,936 $ 415,750
Adjustments to reconcile net earnings to net cash provided by operating activities:    
Depreciation and amortization 193,528 202,655
Share-based compensation expense 90,479 64,974
Provision for loan losses 238,952 218,967
Provision for cancellation reserves 62,587 79,924
Deferred income tax benefit (28,290) (2,178)
Other 8,534 8,879
Net decrease (increase) in:    
Accounts receivable, net 86,377 314,190
Inventory 87,196 1,709,632
Other current assets 91,793 149,777
Auto loans receivable, net (979,052) (1,170,098)
Other assets (8,775) (43,502)
Net decrease in:    
Accounts payable, accrued expenses and other current liabilities and accrued income taxes (60,365) (195,154)
Other liabilities (62,921) (91,739)
Net Cash Provided by (Used in) Operating Activities 148,979 1,662,077
INVESTING ACTIVITIES:    
Capital expenditures (355,442) (319,486)
Proceeds from disposal of property and equipment 1,299 3,806
Purchases of investments (4,641) (6,460)
Sales and returns of investments 1,562 3,486
Net Cash Provided by (Used in) Investing Activities (357,222) (318,654)
FINANCING ACTIVITIES:    
Proceeds from issuances of long-term debt 134,600 2,863,500
Payments on long-term debt (242,989) (4,116,775)
Cash paid for debt issuance costs (15,576) (13,987)
Payments on finance lease obligations (12,177) (10,056)
Issuances of non-recourse notes payable 9,099,929 11,351,696
Payments on non-recourse notes payable (8,430,615) (10,581,076)
Repurchase and retirement of common stock (44,287) (333,814)
Equity issuances 28,430 13,504
Net Cash Provided by (Used in) Financing Activities 517,315 (827,008)
Increase in cash, cash equivalents, and restricted cash 309,072 516,415
Cash, cash equivalents, and restricted cash at beginning of year 951,004 803,618
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD 1,260,076 1,320,033
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEETS:    
Cash and cash equivalents 605,375 688,618
Restricted cash from collections on auto loans receivable 483,570 466,525
Restricted cash included in other assets 171,131 164,890
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD $ 1,260,076 $ 1,320,033
v3.23.4
Consolidated Statements of Shareholders' Equity Statement - USD ($)
$ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
BALANCE, SHARES at Feb. 28, 2022   161,054,000      
BALANCE at Feb. 28, 2022 $ 5,235,439 $ 80,527 $ 1,677,268 $ 3,524,066 $ (46,422)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net earnings 252,265     252,265  
Other Comprehensive Income (Loss), Net of Tax 52,314       52,314
APIC, Share-based Payment Arrangement, Increase for Cost Recognition 21,594   21,594    
Stock Repurchased and Retired During Period, Shares   (1,644,000)      
Stock Repurchased and Retired During Period, Value (157,594) $ (822) (17,207) (139,565)  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period   49,000      
Stock Issued During Period, Value, Stock Options Exercised 3,442 $ 24 3,418    
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture   155,000      
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture (6,823) $ 78 (6,901)    
BALANCE, SHARES at May. 31, 2022   159,614,000      
BALANCE at May. 31, 2022 5,400,637 $ 79,807 1,678,172 3,636,766 5,892
BALANCE, SHARES at Feb. 28, 2022   161,054,000      
BALANCE at Feb. 28, 2022 5,235,439 $ 80,527 1,677,268 3,524,066 (46,422)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net earnings 415,750        
Other Comprehensive Income (Loss), Net of Tax 103,842        
BALANCE, SHARES at Nov. 30, 2022   158,019,000      
BALANCE at Nov. 30, 2022 5,487,573 $ 79,010 1,697,062 3,654,081 57,420
BALANCE, SHARES at May. 31, 2022   159,614,000      
BALANCE at May. 31, 2022 5,400,637 $ 79,807 1,678,172 3,636,766 5,892
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net earnings 125,905     125,905  
Other Comprehensive Income (Loss), Net of Tax 26,107       26,107
APIC, Share-based Payment Arrangement, Increase for Cost Recognition 15,062   15,062    
Stock Repurchased and Retired During Period, Shares   (1,730,000)      
Stock Repurchased and Retired During Period, Value (163,017) $ (865) (18,279) (143,873)  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period   155,000      
Stock Issued During Period, Value, Stock Options Exercised 9,840 $ 78 9,762    
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture   5,000      
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture (307) $ 2 (309)    
BALANCE, SHARES at Aug. 31, 2022   158,044,000      
BALANCE at Aug. 31, 2022 5,414,227 $ 79,022 1,684,408 3,618,798 31,999
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net earnings 37,580     37,580  
Other Comprehensive Income (Loss), Net of Tax 25,421       25,421
APIC, Share-based Payment Arrangement, Increase for Cost Recognition 12,797   12,797    
Stock Repurchased and Retired During Period, Shares   (30,000)      
Stock Repurchased and Retired During Period, Value (2,632) $ (15) (320) (2,297)  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period   4,000      
Stock Issued During Period, Value, Stock Options Exercised 220 $ 2 218    
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture   1,000      
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture (40) $ 1 (41)    
BALANCE, SHARES at Nov. 30, 2022   158,019,000      
BALANCE at Nov. 30, 2022 $ 5,487,573 $ 79,010 1,697,062 3,654,081 57,420
BALANCE, SHARES at Feb. 28, 2023 158,079,033 158,079,000      
BALANCE at Feb. 28, 2023 $ 5,613,077 $ 79,040 1,713,074 3,723,094 97,869
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net earnings 228,298     228,298  
Other Comprehensive Income (Loss), Net of Tax (36,539)       (36,539)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition 21,274   21,274    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period   18,000      
Stock Issued During Period, Value, Stock Options Exercised 988 $ 9 979    
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture   112,000      
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture (3,930) $ 56 (3,986)    
BALANCE, SHARES at May. 31, 2023   158,209,000      
BALANCE at May. 31, 2023 $ 5,823,168 $ 79,105 1,731,341 3,951,392 61,330
BALANCE, SHARES at Feb. 28, 2023 158,079,033 158,079,000      
BALANCE at Feb. 28, 2023 $ 5,613,077 $ 79,040 1,713,074 3,723,094 97,869
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net earnings 428,936        
Other Comprehensive Income (Loss), Net of Tax $ (37,202)        
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period 476,000        
BALANCE, SHARES at Nov. 30, 2023 158,021,407 158,021,000      
BALANCE at Nov. 30, 2023 $ 6,044,365 $ 79,011 1,786,924 4,117,763 60,667
BALANCE, SHARES at May. 31, 2023   158,209,000      
BALANCE at May. 31, 2023 5,823,168 $ 79,105 1,731,341 3,951,392 61,330
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net earnings 118,635     118,635  
Other Comprehensive Income (Loss), Net of Tax 17,267       17,267
APIC, Share-based Payment Arrangement, Increase for Cost Recognition 20,256   20,256    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period   446,000      
Stock Issued During Period, Value, Stock Options Exercised 26,546 $ 223 26,323    
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture   1,000      
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture (213) $ 0 (213)    
BALANCE, SHARES at Aug. 31, 2023   158,656,000      
BALANCE at Aug. 31, 2023 6,005,659 $ 79,328 1,777,707 4,070,027 78,597
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net earnings 82,003     82,003  
Other Comprehensive Income (Loss), Net of Tax (17,930)       (17,930)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition 15,728   15,728    
Stock Repurchased and Retired During Period, Shares   (649,000)      
Stock Repurchased and Retired During Period, Value (41,903) $ (324) (7,312) (34,267)  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period   12,000      
Stock Issued During Period, Value, Stock Options Exercised 896 $ 6 890    
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture   2,000      
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture $ (88) $ 1 (89)    
BALANCE, SHARES at Nov. 30, 2023 158,021,407 158,021,000      
BALANCE at Nov. 30, 2023 $ 6,044,365 $ 79,011 $ 1,786,924 $ 4,117,763 $ 60,667
v3.23.4
Supplemental Cash Flow Information
 9 Months Ended
Nov. 30, 2023
Supplemental Cash Flow Elements [Abstract]  
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] Supplemental Cash Flow Information
Supplemental disclosures of cash flow information:
Nine Months Ended November 30
(In thousands)20232022
Non-cash investing and financing activities:  
(Decrease) increase in accrued capital expenditures$(17,419)$3,123 
Increase in financing obligations$4,527 $— 

See Note 13 for supplemental cash flow information related to leases.
Cash Flow, Supplemental Disclosures [Text Block]
Nine Months Ended November 30
(In thousands)20232022
Non-cash investing and financing activities:  
(Decrease) increase in accrued capital expenditures$(17,419)$3,123 
Increase in financing obligations$4,527 $— 
v3.23.4
Supplemental Cash Flow Information Supplemental Cash Flow Information
 9 Months Ended
Nov. 30, 2023
Supplemental Cash Flow Elements [Abstract]  
Cash Flow, Supplemental Disclosures [Text Block]
Nine Months Ended November 30
(In thousands)20232022
Non-cash investing and financing activities:  
(Decrease) increase in accrued capital expenditures$(17,419)$3,123 
Increase in financing obligations$4,527 $— 
v3.23.4
Supplemental Cash Flow Information Supplemental Cash Flow Information - USD ($)
$ in Thousands
 9 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Supplemental Cash Flow Elements [Abstract]    
Capital Expenditures Incurred but Not yet Paid $ 17,419 $ 3,123
Increase in financing obligations $ 4,527 $ 0
v3.23.4
Background
 9 Months Ended
Nov. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Business Description and Accounting Policies [Text Block] Background
Business. CarMax, Inc. (“we,” “our,” “us,” “CarMax” and “the company”), including its wholly owned subsidiaries, is the nation’s largest retailer of used vehicles.  We operate in two reportable segments:  CarMax Sales Operations and CarMax Auto Finance (“CAF”).  Our CarMax Sales Operations segment consists of all aspects of our auto merchandising and service operations, excluding financing provided by CAF.  Our CAF segment consists solely of our own finance operation that provides financing to customers buying retail vehicles from CarMax. On June 1, 2021, we completed the acquisition of Edmunds Holding Company (“Edmunds”), which does not meet the quantitative thresholds to be considered a reportable segment. See Note 16 for additional information on our reportable segments.

We deliver an unrivaled customer experience by offering a broad selection of quality used vehicles and related products and services at competitive, no-haggle prices using a customer-friendly sales process.  Our omni-channel platform, which gives us the largest addressable market in the used car industry, empowers our retail customers to buy a car on their terms – online, in-store or an integrated combination of both. We offer customers a range of related products and services, including the appraisal and purchase of vehicles directly from consumers; the financing of retail vehicle purchases through CAF and third-party finance providers; the sale of extended protection plan (“EPP”) products, which include extended service plans (“ESPs”) and guaranteed asset protection (“GAP”); and vehicle repair service.  Vehicles purchased through the appraisal process that do not meet our retail standards are sold to licensed dealers through on-site or virtual wholesale auctions.

Basis of Presentation and Use of Estimates. The accompanying interim unaudited consolidated financial statements include the accounts of CarMax and our wholly owned subsidiaries.  All significant intercompany balances and transactions have been eliminated in consolidation.  These interim unaudited consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information.  Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.  In the opinion of management, such interim consolidated financial statements reflect all normal recurring adjustments considered necessary to present fairly the financial position and the results of operations and cash flows for the interim periods presented.  The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full fiscal year.  

The accounting policies followed in the presentation of our interim financial results are consistent with those included in the company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2023 (the “2023 Annual Report”), with the exception of those related to recent accounting pronouncements adopted in the current fiscal year. These interim unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in our 2023 Annual Report.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities.  Actual results could differ from those estimates.  Certain prior year amounts have been reclassified to conform to the current year’s presentation.  Amounts and percentages may not total due to rounding.

Recent Accounting Pronouncements.
Effective in Future Periods
In October 2023, the Financial Accounting Standards Board (“FASB”) issued an accounting pronouncement (ASU 2023-06) related to disclosure or presentation requirements for various subtopics in the FASB’s Accounting Standards Codification (“Codification”). The amendments in the update are intended to align the requirements in the Codification with the U.S. Securities and Exchange Commission's (“SEC”) regulations and facilitate the application of GAAP for all entities. The effective date for each amendment is the date on which the SEC removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, or if the SEC has not removed the requirements by June 30, 2027, this amendment will be removed from the Codification and will not become effective for any entity. Early adoption is prohibited. We do not expect this update to have a material impact on our consolidated financial statements.

In November 2023, the FASB issued an accounting pronouncement (ASU 2023-07) related to the disclosure of incremental segment information on an annual and interim basis. This update is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. We plan to adopt this pronouncement beginning with our fiscal year ended February 28, 2025, and we do not expect it to have a material effect on our consolidated financial statements.
In December 2023, the FASB issued an accounting pronouncement (ASU 2023-09) related to income tax disclosures. The amendments in this update are intended to enhance the transparency and decision usefulness of income tax disclosures primarily through changes to the rate reconciliation and income taxes paid information. This update is effective for annual periods beginning after December 15, 2024, though early adoption is permitted. We plan to adopt this pronouncement for our fiscal year beginning March 1, 2025, and we do not expect it to have a material effect on our consolidated financial statements.
v3.23.4
Revenue
 9 Months Ended
Nov. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer [Text Block] Revenue
 
We recognize revenue when control of the good or service has been transferred to the customer, generally either at the time of sale or upon delivery to a customer.  Our contracts have a fixed contract price and revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. We collect sales taxes and other taxes from customers on behalf of governmental authorities at the time of sale.  These taxes are accounted for on a net basis and are not included in net sales and operating revenues or cost of sales. We generally expense sales commissions when incurred because the amortization period would have been less than one year. These costs are recorded within selling, general and administrative expenses. We do not have any significant payment terms as payment is received at or shortly after the point of sale.

Disaggregation of Revenue
Three Months Ended November 30Nine Months Ended November 30
(In millions)2023202220232022
Used vehicle sales$4,832.1 $5,204.6 $16,424.7 $18,503.2 
Wholesale vehicle sales1,165.2 1,152.2 4,001.5 4,959.1 
Other sales and revenues:
Extended protection plan revenues90.8 91.8 303.8 318.1 
Third-party finance (fees)/income, net(1.2)1.0 (2.4)7.1 
Advertising & subscription revenues (1)
36.7 33.3 101.6 101.9 
Service revenues20.3 19.6 63.8 60.8 
Other4.7 3.5 16.4 12.3 
Total other sales and revenues151.3 149.2 483.2 500.2 
Total net sales and operating revenues$6,148.5 $6,506.0 $20,909.4 $23,962.4 

(1)     Excludes intersegment sales and operating revenues that have been eliminated in consolidation. See Note 16 for further details.

Used Vehicle Sales. Revenue from the sale of used vehicles is recognized upon transfer of control of the vehicle to the customer. As part of our customer service strategy, we guarantee the retail vehicles we sell with a 30-day/1,500 mile, money-back guarantee.  We record a reserve for estimated returns based on historical experience and trends. The reserve for estimated returns is presented gross on the consolidated balance sheets, with a return asset recorded in other current assets and a refund liability recorded in accrued expenses and other current liabilities. We also guarantee the used vehicles we sell with a 90-day/4,000-mile limited warranty. These warranties are deemed assurance-type warranties and are accounted for as warranty obligations. See Note 15 for additional information on this warranty and its related obligation.

Wholesale Vehicle Sales. Wholesale vehicles are sold at our auctions, and revenue from the sale of these vehicles is recognized upon transfer of control of the vehicle to the customer. Dealers also pay a fee to us based on the sale price of the vehicles they purchase. This fee is recognized as revenue at the time of sale. While we provide condition disclosures on each wholesale vehicle sold, the vehicles are subject to a limited right of return. We record a reserve for estimated returns based on historical experience and trends. The reserve for estimated returns is presented gross on the consolidated balance sheets, with a return asset recorded in other current assets and a refund liability recorded in accrued expenses and other current liabilities.

EPP Revenues. We also sell ESP and GAP products on behalf of unrelated third parties, who are primarily responsible for fulfilling the contract, to customers who purchase a retail vehicle.  The ESPs we currently offer on all used vehicles provide coverage up to 60 months (subject to mileage limitations), while GAP covers the customer for the term of their finance contract. We recognize revenue, on a net basis, at the time of sale. We also record a reserve, or refund liability, for estimated contract cancellations. The reserve for cancellations is evaluated for each product and is based on forecasted forward cancellation curves utilizing historical experience, recent trends and credit mix of the customer base.  Our risk related to contract cancellations is limited to the revenue that we receive.  Cancellations fluctuate depending on the volume of EPP sales, customer financing default or prepayment rates, and shifts in customer behavior, including those related to changes in the coverage or
term of the product.  The current portion of estimated cancellation reserves is recognized as a component of accrued expenses and other current liabilities with the remaining amount recognized in other liabilities.  See Note 7 for additional information on cancellation reserves.

We are contractually entitled to receive profit-sharing revenues based on the performance of the ESPs administered by third parties. These revenues are a form of variable consideration included in EPP revenues to the extent that it is probable that it will not result in a significant revenue reversal. An estimate of the amount to which we expect to be entitled is determined upon satisfying the performance obligation of selling the ESP. This estimate is subject to various constraints; primarily, factors that are outside of the company’s influence or control. We have determined that these constraints generally preclude any profit-sharing revenues from being recognized before they are paid. As of November 30, 2023 and February 28, 2023, no current or long-term contract asset was recognized related to cumulative profit-sharing payments to which we expect to be entitled. The estimate of the amount to which we expect to be entitled is reassessed each reporting period and any changes are reflected in other sales and revenues on our consolidated statements of earnings and other assets on our consolidated balance sheets.

Third-Party Finance (Fees)/Income. Customers applying for financing who are not approved or are conditionally approved by CAF are generally evaluated by other third-party finance providers.  These providers generally either pay us or are paid a fixed, pre-negotiated fee per contract.  We recognize these fees at the time of sale.

Advertising and Subscription Revenues. Advertising and subscription revenues consist of revenues earned by our Edmunds business. Advertising revenues are derived from advertising contracts with automotive manufacturers based on fixed fees per impression and fees for certain activities completed by customers on the manufacturers' websites. These fees are recognized in the period the impressions are delivered or certain activities occurred. Subscription revenues are derived from packages sold to automotive dealers that include car leads, inventory listings and enhanced placement in Edmunds' dealer locator and are recognized over the period that the services are made available to the dealers. Subscription revenues also include a digital marketing subscription service, which allows dealers to gain exposure on third party partner websites. Revenues for this service are recognized on a net basis.

Service Revenues. Service revenue consists of labor and parts income related to vehicle repair service, including repairs of vehicles covered under an ESP we sell or warranty program. Service revenue is recognized at the time the work is completed.

Other Revenues. Other revenues include miscellaneous goods and services, which are immaterial to our consolidated financial statements.
v3.23.4
CarMax Auto Finance
 9 Months Ended
Nov. 30, 2023
CarMax Auto Finance Income [Abstract]  
CarMax Auto Finance CarMax Auto Finance
 
CAF provides financing to qualified retail customers purchasing vehicles from CarMax.  CAF provides us the opportunity to capture additional profits, cash flows and sales while managing our reliance on third-party finance sources.  Management regularly analyzes CAF’s operating results by assessing profitability, the performance of the auto loans receivable, including trends in credit losses and delinquencies, and CAF direct expenses.  This information is used to assess CAF’s performance and make operating decisions, including resource allocation.

We typically use securitizations or other funding arrangements to fund loans originated by CAF.  CAF income primarily reflects the interest and fee income generated by the auto loans receivable less the interest expense associated with the debt issued to fund these receivables, a provision for estimated loan losses and direct CAF expenses.

CAF income does not include any allocation of indirect costs.  Although CAF benefits from certain indirect overhead expenditures, we have not allocated indirect costs to CAF to avoid making subjective allocation decisions.  Examples of indirect costs not allocated to CAF include retail store expenses and corporate expenses.  In addition, except for auto loans receivable, which are disclosed in Note 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
Three Months Ended November 30Nine Months Ended November 30
(In millions)2023
% (1)
2022
% (1)
2023
% (1)
2022
% (1)
Interest margin:
Interest and fee income$426.9 9.8 $365.4 8.8 $1,244.3 9.6 $1,069.3 8.8 
Interest expense(170.2)(3.9)(88.8)(2.1)(464.8)(3.6)(200.1)(1.6)
Total interest margin256.7 5.9 276.6 6.7 779.5 6.0 869.2 7.2 
Provision for loan losses(68.3)(1.6)(85.7)(2.1)(239.0)(1.8)(219.0)(1.8)
Total interest margin after provision for loan losses188.4 4.3 190.9 4.6 540.5 4.2 650.2 5.4 
Direct expenses:
Payroll and fringe benefit expense(16.2)(0.4)(16.1)(0.4)(49.6)(0.4)(46.7)(0.4)
Depreciation and amortization(4.1)(0.1)(4.0)(0.1)(12.3)(0.1)(11.6)(0.1)
Other direct expenses(19.4)(0.4)(18.7)(0.5)(57.6)(0.4)(52.4)(0.4)
Total direct expenses(39.7)(0.9)(38.8)(0.9)(119.5)(0.9)(110.7)(0.9)
CarMax Auto Finance income$148.7 3.4 $152.2 3.7 $421.0 3.2 $539.5 4.4 
Total average managed receivables$17,508.9 $16,540.2 $17,276.0 $16,177.8 
(1)     Annualized percentage of total average managed receivables.
v3.23.4
Auto Loan Receivables
 9 Months Ended
Nov. 30, 2023
Receivables [Abstract]  
Auto Loan Receivables Auto Loans Receivable
 
Auto loans receivable include amounts due from customers related to retail vehicle sales financed through CAF and are presented net of an allowance for estimated loan losses.  These auto loans represent a large group of smaller-balance homogeneous loans, which we consider to be part of one class of financing receivable and one portfolio segment for purposes of determining our allowance for loan losses. We generally use warehouse facilities to fund auto loans receivable originated by CAF until we elect to fund them through an asset-backed term funding transaction, such as a term securitization or alternative funding arrangement.  We recognize transfers of auto loans receivable into the warehouse facilities and asset-backed term funding transactions (together, “non-recourse funding vehicles”) as secured borrowings, which result in recording the auto loans receivable and the related non-recourse notes payable on our consolidated balance sheets. The majority of the auto loans receivable serve as collateral for the related non-recourse notes payable of $17.03 billion as of November 30, 2023, and $16.36 billion as of February 28, 2023. See Note 9 for additional information on securitizations and non-recourse notes payable.

Interest income and expenses related to auto loans are included in CAF income.  Interest income on auto loans receivable is recognized when earned based on contractual loan terms.  All loans continue to accrue interest until repayment or charge-off.  When a charge-off occurs, accrued interest is written off by reversing interest income. Direct costs associated with loan originations are not considered material, and thus, are expensed as incurred.  See Note 3 for additional information on CAF income.
Auto Loans Receivable, Net
 As of November 30As of February 28
(In millions)20232023
Asset-backed term funding$12,053.2 $12,242.8 
Warehouse facilities4,529.6 3,649.9 
Overcollateralization (1)
783.4 739.9 
Other managed receivables (2)
138.9 135.3 
Total ending managed receivables17,505.1 16,767.9 
Accrued interest and fees97.9 78.0 
Other(9.2)3.1 
Less: allowance for loan losses(511.9)(507.2)
Auto loans receivable, net$17,081.9 $16,341.8 

(1)     Represents receivables restricted as excess collateral for the non-recourse funding vehicles.
(2)     Other managed receivables includes receivables not funded through the non-recourse funding vehicles.

Credit Quality.  When customers apply for financing, CAF’s proprietary scoring models utilize the customers’ credit history and certain application information to evaluate and rank their risk.  We obtain credit histories and other credit data that includes information such as number, age, type of and payment history for prior or existing credit accounts.  The application information that is used includes income, collateral value and down payment.  The scoring models yield credit grades that represent the relative likelihood of repayment.  Customers with the highest probability of repayment are A-grade customers. Customers assigned a lower grade are determined to have a lower probability of repayment.  For loans that are approved, the credit grade influences the terms of the agreement, such as the required loan-to-value ratio and interest rate. After origination, credit grades are generally not updated.

CAF uses a combination of the initial credit grades and historical performance to monitor the credit quality of the auto loans receivable on an ongoing basis.  We validate the accuracy of the scoring models periodically.  Loan performance is reviewed on a recurring basis to identify whether the assigned grades adequately reflect the customers’ likelihood of repayment.

Ending Managed Receivables by Major Credit Grade
As of November 30, 2023
Fiscal Year of Origination (1)
(In millions)20242023202220212020Prior to 2020Total
% (2)
Core managed receivables (3):
A$3,217.4 $2,922.2 $1,842.0 $725.5 $355.1 $69.4 $9,131.6 52.2 
B1,980.5 1,899.8 1,359.4 564.5 289.1 95.0 6,188.3 35.4 
C and other281.6 552.1 447.9 219.6 104.8 38.3 1,644.3 9.3 
Total core managed receivables5,479.5 5,374.1 3,649.3 1,509.6 749.0 202.7 16,964.2 96.9 
Other managed receivables (4):
C and other225.0 197.6 80.7 10.5 14.2 12.9 540.9 3.1 
Total ending managed receivables$5,704.5 $5,571.7 $3,730.0 $1,520.1 $763.2 $215.6 $17,505.1 100.0 
Gross charge-offs$26.1 $188.8 $120.2 $36.9 $18.3 $11.4 $401.7 
As of February 28, 2023
Fiscal Year of Origination (1)
(In millions)20232022202120202019Prior to 2019Total
% (2)
Core managed receivables (3):
A$3,890.9 $2,555.3 $1,112.0 $677.1 $218.3 $36.3 $8,489.9 50.6 
B2,497.5 1,839.9 816.2 488.9 215.1 56.0 5,913.6 35.3 
C and other732.7 609.5 314.5 169.3 74.1 25.6 1,925.7 11.5 
Total core managed receivables7,121.1 5,004.7 2,242.7 1,335.3 507.5 117.9 16,329.2 97.4 
Other managed receivables (4):
C and other272.0 112.5 15.0 21.1 13.2 4.9 438.7 2.6 
Total ending managed receivables$7,393.1 $5,117.2 $2,257.7 $1,356.4 $520.7 $122.8 $16,767.9 100.0 

(1)     Classified based on credit grade assigned when customers were initially approved for financing.
(2)     Percent of total ending managed receivables.
(3)     Represents CAF's Tier 1 originations.
(4)     Represents CAF's Tier 2 and Tier 3 originations.

Allowance for Loan Losses.  The allowance for loan losses at November 30, 2023 represents the net credit losses expected over the remaining contractual life of our managed receivables. The allowance for loan losses is determined using a net loss timing curve, primarily based on the composition of the portfolio of managed receivables and historical gross loss and recovery trends. Due to the fact that losses for receivables with less than 18 months of performance history can be volatile, our net loss estimate weights both historical losses by credit grade at origination and actual loss data on the receivables to-date, along with forward loss curves, in estimating future performance. Once the receivables have 18 months of performance history, the net loss estimate reflects actual loss experience of those receivables to date, along with forward loss curves, to predict future performance. The forward loss curves are constructed using historical performance data and show the average timing of losses over the course of a receivable’s life. The net loss estimate is calculated by applying the loss rates developed using the methods described above to the amortized cost basis of the managed receivables at inception of the loan.

The output of the net loss timing curve is adjusted to take into account reasonable and supportable forecasts about the future. Specifically, the change in U.S. unemployment rates and the National Automobile Dealers Association used vehicle price index are used to predict changes in gross loss and recovery rates, respectively. An economic adjustment factor, based upon a single macroeconomic scenario, is developed to capture the relationship between changes in these forecasts and changes in gross loss and recovery rates. This factor is applied to the output of the net loss timing curve for the reasonable and supportable forecast period of two years. After the end of this two-year period, we revert to historical experience on a straight-line basis over a period of 12 months. We periodically consider whether the use of alternative metrics would result in improved model performance and revise the models when appropriate. We also consider whether qualitative adjustments are necessary for factors that are not reflected in the quantitative methods but impact the measurement of estimated credit losses. Such adjustments include the uncertainty of the impacts of recent economic trends on customer behavior. The change in the allowance for loan losses is recognized through an adjustment to the provision for loan losses.
Allowance for Loan Losses

Three Months Ended November 30, 2023
(In millions)CoreOtherTotal
% (1)
Balance as of beginning of period$433.0 $105.0 $538.0 3.08 
Charge-offs(125.1)(23.6)(148.7)
Recoveries (2)
47.2 7.1 54.3 
Provision for loan losses57.3 11.0 68.3 
Balance as of end of period$412.4 $99.5 $511.9 2.92 

Three Months Ended November 30, 2022
(In millions)CoreOtherTotal
% (1)
Balance as of beginning of period$396.1 $81.4 $477.5 2.92 
Charge-offs(96.3)(16.3)(112.6)
Recoveries (2)
35.7 4.7 40.4 
Provision for loan losses60.9 24.8 85.7 
Balance as of end of period$396.4 $94.6 $491.0 2.95 

Nine Months Ended November 30, 2023
(In millions)CoreOtherTotal
% (1)
Balance as of beginning of period$401.5 $105.7 $507.2 3.02 
Charge-offs(336.9)(64.8)(401.7)
Recoveries (2)
146.2 21.2 167.4 
Provision for loan losses201.6 37.4 239.0 
Balance as of end of period$412.4 $99.5 $511.9 2.92 

Nine Months Ended November 30, 2022
(In millions)CoreOtherTotal
% (1)
Balance as of beginning of period$377.5 $55.5 $433.0 2.77 
Charge-offs(241.9)(35.0)(276.9)
Recoveries (2)
104.7 11.2 115.9 
Provision for loan losses156.1 62.9 219.0 
Balance as of end of period$396.4 $94.6 $491.0 2.95 

(1)     Percent of total ending managed receivables.
(2)     Net of costs incurred to recover vehicle.
 
During the first nine months of fiscal 2024, the allowance for loan losses as a percent of total ending managed receivables decreased by 10 basis points. The decrease was primarily driven by the impact of our tightened underwriting standards in response to the current environment, partially offset by unfavorable loss performance as well as our continued investment in the Tier 2 business. The increase in net charge-offs primarily reflects continued customer hardship in the current economic environment. The allowance for loan losses as of November 30, 2023 reflects our best estimate of expected future losses based on recent trends in delinquencies, loss performance, recovery rates and the economic environment.

Past Due Receivables. An account is considered delinquent when the related customer fails to make a substantial portion of a scheduled payment on or before the due date. In general, accounts are charged-off on the last business day of the month during which the earliest of the following occurs: the receivable is 120 days or more delinquent as of the last business day of the month, the related vehicle is repossessed and liquidated, or the receivable is otherwise deemed uncollectible. For purposes of
determining impairment, auto loans are evaluated collectively, as they represent a large group of smaller-balance homogeneous loans, and therefore, are not individually evaluated for impairment.

Past Due Receivables
As of November 30, 2023
Core ReceivablesOther ReceivablesTotal
(In millions)ABC & OtherTotalC & Other$
% (1)
Current$9,079.3 $5,715.6 $1,294.5 $16,089.4 $398.3 $16,487.7 94.19 
Delinquent loans:
31-60 days past due31.6 270.6 178.1 480.3 68.1 548.4 3.13 
61-90 days past due15.5 165.0 144.2 324.7 62.3 387.0 2.21 
Greater than 90 days past due5.2 37.1 27.5 69.8 12.2 82.0 0.47 
Total past due52.3 472.7 349.8 874.8 142.6 1,017.4 5.81 
Total ending managed receivables$9,131.6 $6,188.3 $1,644.3 $16,964.2 $540.9 $17,505.1 100.00 

As of February 28, 2023
Core ReceivablesOther ReceivablesTotal
(In millions)ABC & OtherTotalC & Other$
% (1)
Current$8,450.3 $5,540.2 $1,612.3 $15,602.8 $327.6 $15,930.4 95.00 
Delinquent loans:
31-60 days past due25.1 225.7 175.4 426.2 60.6 486.8 2.90 
61-90 days past due10.6 120.0 114.5 245.1 42.1 287.2 1.71 
Greater than 90 days past due3.9 27.7 23.5 55.1 8.4 63.5 0.39 
Total past due39.6 373.4 313.4 726.4 111.1 837.5 5.00 
Total ending managed receivables$8,489.9 $5,913.6 $1,925.7 $16,329.2 $438.7 $16,767.9 100.00 
(1)     Percent of total ending managed receivables.
v3.23.4
Derivative Instruments And Hedging Activities
 9 Months Ended
Nov. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments And Hedging Activities Derivative Instruments and Hedging Activities
 
We use derivatives to manage certain risks arising from both our business operations and economic conditions, particularly with regard to issuances of debt.  Primary exposures include SOFR and other rates used as benchmarks in our securitizations and other debt financing.  We enter into derivative instruments to manage exposures related to the future known receipt or payment of uncertain cash amounts, the values of which are impacted by interest rates, and generally designate these derivative instruments as cash flow hedges for accounting purposes.  In certain cases, we may choose not to designate a derivative instrument as a cash flow hedge for accounting purposes due to uncertainty around the probability that future hedged transactions will occur. Our derivative instruments are used to manage (i) differences in the amount of our known or expected cash receipts and our known or expected cash payments principally related to the funding of our auto loans receivable, and (ii) exposure to variable interest rates associated with our term loans.
 
For the derivatives associated with our non-recourse funding vehicles that are designated as cash flow hedges, the changes in fair value are initially recorded in accumulated other comprehensive income (“AOCI”).  For the majority of these derivatives, the amounts are subsequently reclassified into CAF income in the period that the hedged forecasted transaction affects earnings, which occurs as interest expense is recognized on those future issuances of debt. During the next 12 months, we estimate that an additional $52.1 million will be reclassified from AOCI as an increase to CAF income. Changes in fair value related to derivatives that have not been designated as cash flow hedges for accounting purposes are recognized in the income statement in the period in which the change occurs. For the three and nine months ended November 30, 2023, we recognized expense of $6.1 million and $16.6 million, respectively, in CAF income representing these changes in fair value.

As of November 30, 2023 and February 28, 2023, we had interest rate swaps outstanding with a combined notional amount of $5.00 billion and $4.49 billion, respectively, that were designated as cash flow hedges of interest rate risk. As of November 30,
2023 and February 28, 2023, we had interest rate swaps with a combined notional amount of $0.90 billion and $1.14 billion, respectively, outstanding that were not designated as cash flow hedges for accounting purposes.

See Note 6 for discussion of fair values of financial instruments and Note 12 for the effect on comprehensive income.
v3.23.4
Fair Value Measurements
 9 Months Ended
Nov. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
 
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market or, if none exists, the most advantageous market, for the specific asset or liability at the measurement date (referred to as the “exit price”).  The fair value should be based on assumptions that market participants would use, including a consideration of nonperformance risk.
 
We assess the inputs used to measure fair value using the three-tier hierarchy.  The hierarchy indicates the extent to which inputs used in measuring fair value are observable in the market.
 
Level 1     Inputs include unadjusted quoted prices in active markets for identical assets or liabilities that we can access at the measurement date.
 
Level 2     Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets in active markets, quoted prices from identical or similar assets in inactive markets, observable inputs, such as interest rates and yield curves, and assumptions about risk.
 
Level 3     Inputs that are significant to the measurement that are not observable in the market and include management’s judgments about the assumptions market participants would use in pricing the asset or liability (including assumptions about risk).

Our fair value processes include controls that are designed to ensure that fair values are appropriate.  Such controls include model validation, review of key model inputs, analysis of period-over-period fluctuations and reviews by senior management.

Valuation Methodologies
 
Money Market Securities.  Money market securities are cash equivalents, which are included in cash and cash equivalents, restricted cash from collections on auto loans receivable and other assets.  They consist of highly liquid investments with original maturities of three months or less and are classified as Level 1.
 
Mutual Fund Investments.  Mutual fund investments consist of publicly traded mutual funds that primarily include diversified equity investments in large-, mid- and small-cap domestic and international companies or investment grade debt securities.  The investments, which are included in other assets, are held in a rabbi trust established to fund informally our executive deferred compensation plan and are classified as Level 1.

Derivative Instruments.  The fair values of our derivative instruments are included in either other current assets, other assets, accounts payable or other liabilities.  Our derivatives are not exchange-traded and are over-the-counter customized derivative instruments.  All of our derivative exposures are with highly rated bank counterparties.

We measure derivative fair values assuming that the unit of account is an individual derivative instrument and that derivatives are sold or transferred on a stand-alone basis.  We estimate the fair value of our derivatives using quotes determined by the derivative counterparties and third-party valuation services.  Quotes from third-party valuation services and quotes received from bank counterparties project future cash flows and discount the future amounts to a present value using market-based expectations for interest rates and the contractual terms of the derivative instruments.  The models do not require significant judgment and model inputs can typically be observed in a liquid market; however, because the models include inputs other than quoted prices in active markets, all derivatives are classified as Level 2.
 
Our derivative fair value measurements consider assumptions about counterparty and our own nonperformance risk.  We monitor counterparty and our own nonperformance risk and, in the event that we determine that a party is unlikely to perform under terms of the contract, we would adjust the derivative fair value to reflect the nonperformance risk.
Items Measured at Fair Value on a Recurring Basis
 As of November 30, 2023
(In thousands)Level 1Level 2Total
Assets:   
Money market securities$1,194,255 $— $1,194,255 
Mutual fund investments22,809 — 22,809 
Derivative instruments designated as hedges— 59,137 59,137 
Derivative instruments not designated as hedges— 17,246 17,246 
Total assets at fair value$1,217,064 $76,383 $1,293,447 
Percent of total assets at fair value94.1  %5.9 %100.0 %
Percent of total assets4.5  %0.3 %4.8 %
Liabilities:   
Derivative instruments designated as hedges$— $(6,208)$(6,208)
Total liabilities at fair value$— $(6,208)$(6,208)
Percent of total liabilities—  %— %— %
 As of February 28, 2023
(In thousands)Level 1Level 2Total
Assets:   
Money market securities$865,943 $— $865,943 
Mutual fund investments22,671 — 22,671 
Derivative instruments designated as hedges— 97,328 97,328 
Derivative instruments not designated as hedges— 33,870 33,870 
Total assets at fair value$888,614 $131,198 $1,019,812 
Percent of total assets at fair value87.1  %12.9  %100.0  %
Percent of total assets3.4  %0.5  %3.9  %
Liabilities:   
Total liabilities at fair value$— $— $— 
Percent of total liabilities—  %— %— %

Fair Value of Financial Instruments

The carrying value of our cash and cash equivalents, accounts receivable, other restricted cash deposits and accounts payable approximates fair value due to the short-term nature and/or variable rates associated with these financial instruments. Auto loans receivable are presented net of an allowance for estimated loan losses, which we believe approximates fair value. We believe that the carrying value of our revolving credit facility and term loans approximates fair value due to the variable rates associated with these obligations. The fair value of our senior unsecured notes, which are not carried at fair value on our consolidated balance sheets, was determined using Level 2 inputs based on quoted market prices. The carrying value and fair value of the senior unsecured notes as of November 30, 2023 and February 28, 2023, respectively, are as follows:
(In thousands)As of November 30, 2023As of February 28, 2023
Carrying value$400,000 $500,000 
Fair value$376,076 $473,749 
v3.23.4
Cancellation Reserves
 9 Months Ended
Nov. 30, 2023
Cancellation Reserves [Abstract]  
Cancellation Reserves Cancellation Reserves
We recognize revenue for EPP products, on a net basis, at the time of sale. We also record a reserve, or refund liability, for estimated contract cancellations.  Cancellations of these services may result from early termination by the customer, or default or prepayment on the finance contract.  The reserve for cancellations is evaluated for each product and is based on forecasted forward cancellation curves utilizing historical experience, recent trends and credit mix of the customer base. 

Cancellation Reserves
 Three Months Ended November 30Nine Months Ended November 30
(In millions)2023202220232022
Balance as of beginning of period$136.6 $148.8 $139.2 $144.7 
Cancellations(22.4)(25.2)(70.2)(80.3)
Provision for future cancellations17.4 20.7 62.6 79.9 
Balance as of end of period$131.6 $144.3 $131.6 $144.3 
 
The current portion of estimated cancellation reserves is recognized as a component of accrued expenses and other current liabilities with the remaining amount recognized in other liabilities. As of November 30, 2023 and February 28, 2023, the current portion of cancellation reserves was $68.0 million and $76.1 million, respectively.
v3.23.4
Income Taxes
 9 Months Ended
Nov. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
 
We had $31.1 million of gross unrecognized tax benefits as of November 30, 2023, and $27.1 million as of February 28, 2023.  There were no significant changes to the gross unrecognized tax benefits as reported for the fiscal year ended February 28, 2023.
v3.23.4
Debt
 3 Months Ended
Nov. 30, 2023
Debt Disclosure [Abstract]  
Debt Debt
(In thousands)As of November 30As of February 28
Debt Description (1)
Maturity Date20232023
Revolving credit facility (2)
June 2028$— $— 
Term loan (2)
June 2024300,000 300,000 
Term loan (2)
October 2026699,598 699,493 
3.86% Senior notesApril 2023— 100,000 
4.17% Senior notesApril 2026200,000 200,000 
4.27% Senior notesApril 2028200,000 200,000 
Financing obligationsVarious dates through February 2059519,396 522,526 
Non-recourse notes payableVarious dates through December 203017,029,405 16,360,092 
Total debt18,948,399 18,382,111 
Less: current portion(759,288)(579,468)
Less: unamortized debt issuance costs(25,420)(27,506)
Long-term debt, net$18,163,691 $17,775,137 

(1)    Interest is payable monthly, with the exception of our senior notes, which are payable semi-annually.
(2)    Borrowings accrue interest at variable rates based on SOFR, the federal funds rate, or the prime rate, depending on the type of borrowing.

Revolving Credit Facility. Borrowings under our $2.00 billion unsecured revolving credit facility (the “credit facility”) are available for working capital and general corporate purposes.  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.  As of November 30, 2023, the unused capacity of $2.00 billion was fully available to us.

Term Loans. Borrowings under our $300 million and $700 million term loans are available for working capital and general corporate purposes. The interest rate on our term loans was 6.32% as of November 30, 2023. The $300 million term loan
matures in June 2024 and was therefore classified as current. The $700 million term loan was classified as long-term debt as no repayments are scheduled to be made within the next 12 months.

Senior Notes. The 3.86% senior notes matured during the first quarter of fiscal 2024. Borrowings under our unsecured senior notes totaling $400 million are available for working capital and general corporate purposes. As of November 30, 2023, all notes were classified as long-term debt as no repayments are scheduled to be made within the next 12 months.
 
Financing Obligations.  Financing obligations relate to stores subject to sale-leaseback transactions that do not qualify for sale accounting.  The financing obligations were structured at varying interest rates and generally have initial lease terms ranging from 15 to 20 years with payments made monthly.  We have not entered into any new sale-leaseback transactions since fiscal 2009. In the event the agreements are modified or extended beyond their original term, the related obligation is adjusted based on the present value of the revised future payments, with a corresponding change to the assets subject to these transactions. Upon modification, the amortization of the obligation is reset, resulting in more of the payments being applied to interest expense in the initial years following the modification.
 
Non-Recourse Notes Payable.  The non-recourse notes payable relate to auto loans receivable funded through non-recourse funding vehicles.  The timing of principal payments on the non-recourse notes payable is based on the timing of principal collections and defaults on the related auto loans receivable. The current portion of non-recourse notes payable represents principal payments that are due to be distributed in the following period.
 
Notes payable related to our asset-backed term funding transactions accrue interest predominantly at fixed rates and have scheduled maturities through December 2030, but may mature earlier, depending upon the repayment rate of the underlying auto loans receivable. 

Information on our funding vehicles of non-recourse notes payable as of November 30, 2023 are as follows:
(In billions)Capacity
Warehouse facilities:
December 2023 expiration$0.50 
February 2024 expiration2.80 
August 2024 expiration2.30 
Combined warehouse facility limit$5.60 
Unused capacity$1.07 
Non-recourse notes payable outstanding:
Warehouse facilities$4.53 
Asset-backed term funding transactions12.50 
Non-recourse notes payable$17.03 

We generally enter into warehouse facility agreements for one-year terms and typically renew the agreements annually. In December 2023, the $0.50 billion facility was extended with an expiration date of January 2024, which we expect to renew for an annual term in January 2024. The return requirements of warehouse facility investors could fluctuate significantly depending on market conditions.  At renewal, the cost, structure and capacity of the facilities could change.  These changes could have a significant impact on our funding costs.
 
See Note 4 for additional information on the related auto loans receivable.
 
Capitalized Interest.  We capitalize interest in connection with the construction of certain facilities.  For the nine months ended November 30, 2023 and 2022, we capitalized interest of $4.6 million and $3.6 million, respectively.
 
Financial Covenants.  The credit facility, term loans and senior note agreements contain representations and warranties, conditions and covenants.  We must also meet financial covenants in conjunction with certain financing obligations.  The agreements governing our non-recourse funding vehicles contain representations and warranties, as well as financial covenants and performance triggers related to events of default.  As of November 30, 2023, we were in compliance with these financial covenants and our non-recourse funding vehicles were in compliance with these performance triggers.
v3.23.4
Stock and Stock-Based Incentive Plans
 9 Months Ended
Nov. 30, 2023
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Stock and Stock-Based Incentive Plans Stock and Stock-Based Incentive Plans
 
(A)Share Repurchase Program
During the third quarter of fiscal 2024, we resumed our share repurchase program after having paused it during the third quarter of fiscal year 2023. As of November 30, 2023, a total of $4.0 billion of board authorizations for repurchases of our common stock was outstanding, with no expiration date, of which $2.41 billion remained available for repurchase.

Common Stock Repurchases
 Three Months EndedNine Months Ended
 November 30November 30
 2023202220232022
Number of shares repurchased (in thousands)
648.5 30.0 648.5 3,403.9 
Average cost per share$64.60 $87.70 $64.60 $94.95 
Available for repurchase, as of end of period (in millions)
$2,409.4 $2,451.3 $2,409.4 $2,451.3 

(B)Share-Based Compensation

Composition of Share-Based Compensation Expense
 Three Months EndedNine Months Ended
 November 30November 30
(In thousands)2023202220232022
Cost of sales$692 $333 $3,277 $1,474 
CarMax Auto Finance income1,016 981 2,663 1,394 
Selling, general and administrative expenses19,918 17,213 86,516 63,983 
Share-based compensation expense, before income taxes$21,626 $18,527 $92,456 $66,851 

Composition of Share-Based Compensation Expense – By Grant Type
 Three Months EndedNine Months Ended
 November 30November 30
(In thousands)2023202220232022
Nonqualified stock options$12,334 $8,968 $40,061 $29,648 
Cash-settled restricted stock units (RSUs)5,306 5,167 33,221 15,521 
Stock-settled market stock units (MSUs)3,531 3,358 13,639 12,234 
Other share-based incentives:
Stock-settled performance stock units (PSUs)(137)209 1,401 5,150 
Restricted stock (RSAs)— 262 307 571 
Stock-settled deferred stock units (DSUs)— — 1,850 1,850 
Employee stock purchase plan592 563 1,977 1,877 
Total other share-based incentives$455 $1,034 $5,535 $9,448 
Share-based compensation expense, before income taxes$21,626 $18,527 $92,456 $66,851 
(C)Stock Incentive Plan Information

Share/Unit Activity
Nine Months Ended November 30, 2023
Equity ClassifiedLiability Classified
(Shares/units in thousands)OptionsMSUsOtherRSUs
Outstanding as of February 28, 20236,776 404 130 1,004 
Granted1,549 186 76 914 
Exercised or vested and converted(476)(187)(11)(489)
Cancelled(175)(19)— (96)
Outstanding as of November 30, 20237,674 384 195 1,333 
Weighted average grant date fair value per share/unit:
Granted$29.10 $99.81 $74.31 $70.68 
Ending outstanding$26.90 $123.67 $88.70 $81.34 
As of November 30, 2023
Unrecognized compensation (in millions)
$54.2 $19.6 $0.8 
v3.23.4
Net Earnings Per Share
 9 Months Ended
Nov. 30, 2023
Earnings Per Share [Abstract]  
Net Earnings Per Share Net Earnings Per Share
 
Basic net earnings per share is computed by dividing net earnings available for basic common shares by the weighted average number of shares of common stock outstanding.  Diluted net earnings per share is computed by dividing net earnings available for diluted common shares by the sum of weighted average number of shares of common stock outstanding and dilutive potential common stock.  Diluted net earnings per share is calculated using the “if-converted” treasury stock method.

Basic and Dilutive Net Earnings Per Share Reconciliations
 Three Months EndedNine Months Ended
 November 30November 30
(In thousands except per share data)2023202220232022
Net earnings$82,003 $37,580 $428,936 $415,750 
Weighted average common shares outstanding158,446 158,003 158,347 159,044 
Dilutive potential common shares:
Stock options156 268 301 857 
Stock-settled stock units and awards197 265 218 294 
Weighted average common shares and dilutive potential common shares158,799 158,536 158,866 160,195 
Basic net earnings per share$0.52 $0.24 $2.71 $2.61 
Diluted net earnings per share$0.52 $0.24 $2.70 $2.60 
 
Certain options to purchase shares of common stock were outstanding and not included in the calculation of diluted net earnings per share because their inclusion would have been antidilutive.  On a weighted average basis, for the three months ended November 30, 2023 and 2022, options to purchase 6,263,513 shares and 4,934,554 shares of common stock, respectively, were not included. For the nine months ended November 30, 2023 and 2022, options to purchase 5,732,651 shares and 1,917,727 shares of common stock, respectively, were not included.
v3.23.4
Accumulated Other Comprehensive Income (Loss)
 9 Months Ended
Nov. 30, 2023
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]  
Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Income
 
Changes in Accumulated Other Comprehensive Income By Component
   Total
 NetNetAccumulated
 UnrecognizedUnrecognizedOther
 ActuarialHedgeComprehensive
(In thousands, net of income taxes)LossesGainsIncome
Balance as of February 28, 2023$(44,590)$142,459 $97,869 
Other comprehensive loss before reclassifications— (8,623)(8,623)
Amounts reclassified from accumulated other comprehensive income294 (28,873)(28,579)
Other comprehensive income (loss)294 (37,496)(37,202)
Balance as of November 30, 2023$(44,296)$104,963 $60,667 
 
Changes In and Reclassifications Out of Accumulated Other Comprehensive Income
 Three Months Ended November 30Nine Months Ended November 30
(In thousands)2023202220232022
Retirement Benefit Plans:
Actuarial loss amortization reclassifications recognized in net pension expense:
Cost of sales$58 $272 $174 $810 
CarMax Auto Finance income4 19 11 51 
Selling, general and administrative expenses67 346 202 1,048 
Total amortization reclassifications recognized in net pension expense129 637 387 1,909 
Tax expense(31)(155)(93)(465)
Amortization reclassifications recognized in net pension expense, net of tax98 482 294 1,444 
Net change in retirement benefit plan unrecognized actuarial losses, net of tax98 482 294 1,444 
Cash Flow Hedges (Note 5):  
Changes in fair value(10,594)42,521 (11,599)152,731 
Tax benefit (expense)2,640 (10,919)2,976 (39,221)
Changes in fair value, net of tax(7,954)31,602 (8,623)113,510 
Reclassifications to CarMax Auto Finance income(13,321)(8,965)(38,180)(14,951)
Tax benefit3,247 2,302 9,307 3,839 
Reclassification of hedge gains, net of tax(10,074)(6,663)(28,873)(11,112)
Net change in cash flow hedge unrecognized gains, net of tax(18,028)24,939 (37,496)102,398 
Total other comprehensive (loss) income, net of tax$(17,930)$25,421 $(37,202)$103,842 
 
Changes in the funded status of our retirement plans and changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognized in accumulated other comprehensive income. The cumulative balances are net of deferred taxes of $20.4 million as of November 30, 2023 and $32.6 million as of February 28, 2023.
v3.23.4
Leases (Notes)
 9 Months Ended
Nov. 30, 2023
Leases [Abstract]  
Leases of Lessee Disclosure [Text Block] Leases
Our leases primarily consist of operating and finance leases related to retail stores, office space, land and equipment. We also have stores subject to sale-leaseback transactions that do not qualify for sale accounting and are accounted for as financing obligations. For more information on these financing obligations see Note 9.
The initial term for real property leases is typically 5 to 20 years. For equipment leases, the initial term generally ranges from 3 to 8 years. Most leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 20 years or more. We include options to renew (or terminate) in our lease term, and as part of our right-of-use (“ROU”) assets and lease liabilities, when it is reasonably certain that we will exercise that option.

ROU assets and the related lease liabilities are initially measured at the present value of future lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our collateralized incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. We include variable lease payments in the initial measurement of ROU assets and lease liabilities only to the extent they depend on an index or rate. Changes in such indices or rates are accounted for in the period the change occurs, and do not result in the remeasurement of the ROU asset or liability. We are also responsible for payment of certain real estate taxes, insurance and other expenses on our leases. These amounts are generally considered to be variable and are not included in the measurement of the ROU asset and lease liability. We generally account for non-lease components, such as maintenance, separately from lease components. For certain equipment leases, we apply a portfolio approach to account for the lease assets and liabilities.

Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leases with a term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.

The components of lease expense were as follows:
Three Months Ended November 30Nine Months Ended November 30
(In thousands)2023202220232022
Operating lease cost (1)
$22,772 $22,450 $66,958 $68,381 
Finance lease cost:
Depreciation of lease assets5,266 4,178 14,708 11,701 
Interest on lease liabilities6,610 5,728 19,112 16,129 
Total finance lease cost11,876 9,906 33,820 27,830 
Total lease cost$34,648 $32,356 $100,778 $96,211 

(1) Includes short-term leases and variable lease costs, which are immaterial.

Supplemental balance sheet information related to leases was as follows:
As of November 30As of February 28
(In thousands)Classification20232023
Assets:
Operating lease assetsOperating lease assets$533,387 $545,677 
Finance lease assets
Property and equipment, net (1)
179,381 145,372 
Total lease assets$712,768 $691,049 
Liabilities:
Current:
Operating leasesCurrent portion of operating lease liabilities$56,410 $53,287 
Finance leasesAccrued expenses and other current liabilities20,452 18,788 
Long-term:
Operating leasesOperating lease liabilities, excluding current portion509,141 523,828 
Finance leasesOther liabilities202,024 165,135 
Total lease liabilities$788,027 $761,038 

(1)    Finance lease assets are recorded net of accumulated depreciation of $53.1 million as of November 30, 2023 and $46.7 million as of February 28, 2023.
Lease term and discount rate information related to leases was as follows:
As of November 30As of February 28
Lease Term and Discount Rate20232023
Weighted Average Remaining Lease Term (in years)
Operating leases16.0916.35
Finance leases11.5610.84
Weighted Average Discount Rate
Operating leases5.02 %4.91 %
Finance leases17.17 %19.34 %

Supplemental cash flow information related to leases was as follows:
Nine Months Ended November 30
(In thousands)20232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$66,352 $67,675 
Operating cash flows from finance leases$18,387 $12,747 
Financing cash flows from finance leases$12,177 $10,056 
Lease assets obtained in exchange for lease obligations:
Operating leases$29,080 $29,027 
Finance leases$50,085 $31,344 

Maturities of lease liabilities were as follows:
As of November 30, 2023
(In thousands)
Operating Leases (1)
Finance Leases (1)
Fiscal 2024, remaining$20,661 $10,886 
Fiscal 202582,816 45,606 
Fiscal 202677,454 47,365 
Fiscal 202771,099 43,554 
Fiscal 202866,952 36,691 
Thereafter561,850 258,658 
Total lease payments880,832 442,760 
Less: interest(315,281)(220,284)
Present value of lease liabilities$565,551 $222,476 
(1)    Lease payments exclude $5.1 million of legally binding minimum lease payments for leases signed but not yet commenced.
v3.23.4
Contingent Liabilities
 9 Months Ended
Nov. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
Contingent Liabilities Contingent Liabilities
Litigation.  CarMax entities are defendants in a proceeding asserting wage and hour claims with respect to non-exempt CarMax employees in California. The asserted claims include failure to provide meal periods and rest breaks; pay statutory or contractual wages; reimburse for work-related expenses; and Private Attorneys General Act (“PAGA”) claims. On July 9, 2021, Daniel Bendure v. CarMax Auto Superstores California, LLC et al., a putative class action, was filed in the Superior Court of California, County of San Bernardino. The Bendure lawsuit seeks civil penalties for violation of the Labor Code, attorneys’ fees, costs, restitution of unpaid wages, interest, injunctive and equitable relief, general damages, and special damages. Bendure subsequently decided not to proceed with an individual or putative class claim, but rather filed and served a PAGA-only complaint in the Superior Court of California for the County of San Bernardino on December 7, 2021, based on the same allegations pled in the original complaint.

The California Supreme Court held in Adolph v. Uber that an employee who signs an arbitration agreement, as Bendure has, may still pursue a representative PAGA action in court if the employee is successful in his individual PAGA action in arbitration. In light of this decision, Bendure filed a demand on October 16, 2023 for an individual arbitration.

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.

Other Matters.  In accordance with the terms of real estate lease agreements, we generally agree to indemnify the lessor from certain liabilities arising as a result of the use of the leased premises, including environmental liabilities and repairs to leased property upon termination of the lease.  Additionally, in accordance with the terms of agreements entered into for the sale of properties, we generally agree to indemnify the buyer from certain liabilities and costs arising subsequent to the date of the sale, including environmental liabilities and liabilities resulting from the breach of representations or warranties made in accordance with the agreements.  We do not have any known material environmental commitments, contingencies or other indemnification issues arising from these arrangements.

As part of our customer service strategy, we guarantee the used vehicles we retail with a 90-day/4,000 mile limited warranty.  A vehicle in need of repair within this period will be repaired free of charge.  As a result, each vehicle sold has an implied liability associated with it.  Accordingly, based on historical trends, we record a provision for estimated future repairs during the guarantee period for each vehicle sold.  The liability for this guarantee was $25.4 million as of November 30, 2023, and $27.1 million as of February 28, 2023, and is included in accrued expenses and other current liabilities.
v3.23.4
Segment Reporting
 9 Months Ended
Nov. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting Disclosure Segment Information
We operate in two reportable segments: CarMax Sales Operations and CAF. Our CarMax Sales Operations segment consists of all aspects of our auto merchandising and service operations, excluding financing provided by CAF. Our CAF segment consists solely of our own finance operation that provides financing to customers buying retail vehicles from CarMax.

We also have a non-reportable operating segment related to our Edmunds business, which is reflected as “Other” in the segment tables below. Revenue generated by Edmunds primarily represents advertising and subscription revenues as discussed in Note 2. Edmunds also generates intersegment revenue as a result of transactions between Edmunds and CarMax Sales Operations, which represent arm’s length transactions at prevailing market prices. Such amounts are eliminated in consolidation.

The performance of our CarMax Sales Operations segment is reviewed by our chief operating decision maker at the gross profit level, the components of which are presented in the tables below. Required segment information related to our CAF segment is presented in Note 3. Additionally, asset information by segment is not utilized for purposes of assessing performance or allocating resources and, as a result, such information has not been presented.
Segment Information

Three Months Ended November 30, 2023
(In thousands)CarMax Sales OperationsOtherEliminationsTotal
Sales and operating revenues$6,111,839 $36,699 $— $6,148,538 
Intersegment sales and operating revenues— 8,100 (8,100)— 
Total sales and operating revenues$6,111,839 $44,799 $(8,100)$6,148,538 
Depreciation and amortization (1)
$393 $5,097 $— $5,490 
Gross profit $586,332 $27,710 $(1,179)$612,863 
Reconciliation to Consolidated Earnings Before Taxes:
CAF Income148,659 
Selling, general and administrative expenses(559,962)
Depreciation and amortization (2)
(60,623)
Interest expense(31,265)
Other income (expense)886 
Earnings before income taxes$110,558 


Three Months Ended November 30, 2022
(In thousands)CarMax Sales OperationsOtherEliminationsTotal
Sales and operating revenues$6,472,702 $33,254 $— $6,505,956 
Intersegment sales and operating revenues— 5,549 (5,549)— 
Total sales and operating revenues$6,472,702 $38,803 $(5,549)$6,505,956 
Depreciation and amortization (1)
$404 $3,735 $— $4,139 
Gross profit $554,057 $23,780 $(1,149)$576,688 
Reconciliation to Consolidated Earnings Before Taxes:
CAF Income152,196 
Selling, general and administrative expenses(591,727)
Depreciation and amortization (2)
(57,377)
Interest expense(30,150)
Other income (expense)363 
Earnings before income taxes$49,993 
Nine Months Ended November 30, 2023
(In thousands)CarMax Sales OperationsOtherEliminationsTotal
Sales and operating revenues$20,807,858 $101,579 $— $20,909,437 
Intersegment sales and operating revenues— 26,165 (26,165)— 
Total sales and operating revenues$20,807,858 $127,744 $(26,165)$20,909,437 
Depreciation and amortization (1)
$1,239 $14,236 $— $15,475 
Gross profit $2,053,228 $77,269 $(3,479)$2,127,018 
Reconciliation to Consolidated Earnings Before Taxes:
CAF Income421,004 
Selling, general and administrative expenses(1,705,493)
Depreciation and amortization (2)
(177,859)
Interest expense(93,316)
Other income (expense)4,730 
Earnings before income taxes$576,084 


Nine Months Ended November 30, 2022
(In thousands)CarMax Sales OperationsOtherEliminationsTotal
Sales and operating revenues$23,860,462 $101,918 $— $23,962,380 
Intersegment sales and operating revenues— 20,219 (20,219)— 
Total sales and operating revenues$23,860,462 $122,137 $(20,219)$23,962,380 
Depreciation and amortization (1)
$1,092 $10,199 $— $11,291 
Gross profit $2,115,631 $77,869 $(4,276)$2,189,224 
Reconciliation to Consolidated Earnings Before Taxes:
CAF Income539,538 
Selling, general and administrative expenses(1,914,508)
Depreciation and amortization (2)
(170,717)
Interest expense(91,670)
Other income (expense)2,303 
Earnings before income taxes$554,170 

(1)    Represents only the portion of depreciation and amortization recorded within Cost of sales, and thus included in the calculation of Gross profit.
(2)    Exclusive of depreciation and amortization recorded within Cost of sales.
v3.23.4
Background Basis of Accounting (Policies)
 9 Months Ended
Nov. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Background
Business. CarMax, Inc. (“we,” “our,” “us,” “CarMax” and “the company”), including its wholly owned subsidiaries, is the nation’s largest retailer of used vehicles.  We operate in two reportable segments:  CarMax Sales Operations and CarMax Auto Finance (“CAF”).  Our CarMax Sales Operations segment consists of all aspects of our auto merchandising and service operations, excluding financing provided by CAF.  Our CAF segment consists solely of our own finance operation that provides financing to customers buying retail vehicles from CarMax. On June 1, 2021, we completed the acquisition of Edmunds Holding Company (“Edmunds”), which does not meet the quantitative thresholds to be considered a reportable segment. See Note 16 for additional information on our reportable segments.

We deliver an unrivaled customer experience by offering a broad selection of quality used vehicles and related products and services at competitive, no-haggle prices using a customer-friendly sales process.  Our omni-channel platform, which gives us the largest addressable market in the used car industry, empowers our retail customers to buy a car on their terms – online, in-store or an integrated combination of both. We offer customers a range of related products and services, including the appraisal and purchase of vehicles directly from consumers; the financing of retail vehicle purchases through CAF and third-party finance providers; the sale of extended protection plan (“EPP”) products, which include extended service plans (“ESPs”) and guaranteed asset protection (“GAP”); and vehicle repair service.  Vehicles purchased through the appraisal process that do not meet our retail standards are sold to licensed dealers through on-site or virtual wholesale auctions.
Basis of Presentation
Basis of Presentation and Use of Estimates. The accompanying interim unaudited consolidated financial statements include the accounts of CarMax and our wholly owned subsidiaries.  All significant intercompany balances and transactions have been eliminated in consolidation.  These interim unaudited consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information.  Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.  In the opinion of management, such interim consolidated financial statements reflect all normal recurring adjustments considered necessary to present fairly the financial position and the results of operations and cash flows for the interim periods presented.  The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full fiscal year.  

The accounting policies followed in the presentation of our interim financial results are consistent with those included in the company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2023 (the “2023 Annual Report”), with the exception of those related to recent accounting pronouncements adopted in the current fiscal year. These interim unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in our 2023 Annual Report.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities.  Actual results could differ from those estimates.  Certain prior year amounts have been reclassified to conform to the current year’s presentation.  Amounts and percentages may not total due to rounding.
Recent Accounting Pronouncements
Effective in Future Periods
In October 2023, the Financial Accounting Standards Board (“FASB”) issued an accounting pronouncement (ASU 2023-06) related to disclosure or presentation requirements for various subtopics in the FASB’s Accounting Standards Codification (“Codification”). The amendments in the update are intended to align the requirements in the Codification with the U.S. Securities and Exchange Commission's (“SEC”) regulations and facilitate the application of GAAP for all entities. The effective date for each amendment is the date on which the SEC removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, or if the SEC has not removed the requirements by June 30, 2027, this amendment will be removed from the Codification and will not become effective for any entity. Early adoption is prohibited. We do not expect this update to have a material impact on our consolidated financial statements.

In November 2023, the FASB issued an accounting pronouncement (ASU 2023-07) related to the disclosure of incremental segment information on an annual and interim basis. This update is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. We plan to adopt this pronouncement beginning with our fiscal year ended February 28, 2025, and we do not expect it to have a material effect on our consolidated financial statements.
In December 2023, the FASB issued an accounting pronouncement (ASU 2023-09) related to income tax disclosures. The amendments in this update are intended to enhance the transparency and decision usefulness of income tax disclosures primarily through changes to the rate reconciliation and income taxes paid information. This update is effective for annual periods beginning after December 15, 2024, though early adoption is permitted. We plan to adopt this pronouncement for our fiscal year beginning March 1, 2025, and we do not expect it to have a material effect on our consolidated financial statements.
v3.23.4
Revenue (Tables)
 9 Months Ended
Nov. 30, 2023
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
Disaggregation of Revenue
Three Months Ended November 30Nine Months Ended November 30
(In millions)2023202220232022
Used vehicle sales$4,832.1 $5,204.6 $16,424.7 $18,503.2 
Wholesale vehicle sales1,165.2 1,152.2 4,001.5 4,959.1 
Other sales and revenues:
Extended protection plan revenues90.8 91.8 303.8 318.1 
Third-party finance (fees)/income, net(1.2)1.0 (2.4)7.1 
Advertising & subscription revenues (1)
36.7 33.3 101.6 101.9 
Service revenues20.3 19.6 63.8 60.8 
Other4.7 3.5 16.4 12.3 
Total other sales and revenues151.3 149.2 483.2 500.2 
Total net sales and operating revenues$6,148.5 $6,506.0 $20,909.4 $23,962.4 

(1)     Excludes intersegment sales and operating revenues that have been eliminated in consolidation. See Note 16 for further details.
v3.23.4
CarMax Auto Finance (Tables)
 9 Months Ended
Nov. 30, 2023
CarMax Auto Finance Income [Abstract]  
Components Of CarMax Auto Finance Income
Components of CAF Income
Three Months Ended November 30Nine Months Ended November 30
(In millions)2023
% (1)
2022
% (1)
2023
% (1)
2022
% (1)
Interest margin:
Interest and fee income$426.9 9.8 $365.4 8.8 $1,244.3 9.6 $1,069.3 8.8 
Interest expense(170.2)(3.9)(88.8)(2.1)(464.8)(3.6)(200.1)(1.6)
Total interest margin256.7 5.9 276.6 6.7 779.5 6.0 869.2 7.2 
Provision for loan losses(68.3)(1.6)(85.7)(2.1)(239.0)(1.8)(219.0)(1.8)
Total interest margin after provision for loan losses188.4 4.3 190.9 4.6 540.5 4.2 650.2 5.4 
Direct expenses:
Payroll and fringe benefit expense(16.2)(0.4)(16.1)(0.4)(49.6)(0.4)(46.7)(0.4)
Depreciation and amortization(4.1)(0.1)(4.0)(0.1)(12.3)(0.1)(11.6)(0.1)
Other direct expenses(19.4)(0.4)(18.7)(0.5)(57.6)(0.4)(52.4)(0.4)
Total direct expenses(39.7)(0.9)(38.8)(0.9)(119.5)(0.9)(110.7)(0.9)
CarMax Auto Finance income$148.7 3.4 $152.2 3.7 $421.0 3.2 $539.5 4.4 
Total average managed receivables$17,508.9 $16,540.2 $17,276.0 $16,177.8 
(1)     Annualized percentage of total average managed receivables.
v3.23.4
Auto Loan Receivables (Tables)
 9 Months Ended
Nov. 30, 2023
Receivables [Abstract]  
Auto Loan Receivables, Net
Auto Loans Receivable, Net
 As of November 30As of February 28
(In millions)20232023
Asset-backed term funding$12,053.2 $12,242.8 
Warehouse facilities4,529.6 3,649.9 
Overcollateralization (1)
783.4 739.9 
Other managed receivables (2)
138.9 135.3 
Total ending managed receivables17,505.1 16,767.9 
Accrued interest and fees97.9 78.0 
Other(9.2)3.1 
Less: allowance for loan losses(511.9)(507.2)
Auto loans receivable, net$17,081.9 $16,341.8 

(1)     Represents receivables restricted as excess collateral for the non-recourse funding vehicles.
(2)     Other managed receivables includes receivables not funded through the non-recourse funding vehicles.
Ending Managed Receivables By Major Credit Grade
Ending Managed Receivables by Major Credit Grade
As of November 30, 2023
Fiscal Year of Origination (1)
(In millions)20242023202220212020Prior to 2020Total
% (2)
Core managed receivables (3):
A$3,217.4 $2,922.2 $1,842.0 $725.5 $355.1 $69.4 $9,131.6 52.2 
B1,980.5 1,899.8 1,359.4 564.5 289.1 95.0 6,188.3 35.4 
C and other281.6 552.1 447.9 219.6 104.8 38.3 1,644.3 9.3 
Total core managed receivables5,479.5 5,374.1 3,649.3 1,509.6 749.0 202.7 16,964.2 96.9 
Other managed receivables (4):
C and other225.0 197.6 80.7 10.5 14.2 12.9 540.9 3.1 
Total ending managed receivables$5,704.5 $5,571.7 $3,730.0 $1,520.1 $763.2 $215.6 $17,505.1 100.0 
Gross charge-offs$26.1 $188.8 $120.2 $36.9 $18.3 $11.4 $401.7 
As of February 28, 2023
Fiscal Year of Origination (1)
(In millions)20232022202120202019Prior to 2019Total
% (2)
Core managed receivables (3):
A$3,890.9 $2,555.3 $1,112.0 $677.1 $218.3 $36.3 $8,489.9 50.6 
B2,497.5 1,839.9 816.2 488.9 215.1 56.0 5,913.6 35.3 
C and other732.7 609.5 314.5 169.3 74.1 25.6 1,925.7 11.5 
Total core managed receivables7,121.1 5,004.7 2,242.7 1,335.3 507.5 117.9 16,329.2 97.4 
Other managed receivables (4):
C and other272.0 112.5 15.0 21.1 13.2 4.9 438.7 2.6 
Total ending managed receivables$7,393.1 $5,117.2 $2,257.7 $1,356.4 $520.7 $122.8 $16,767.9 100.0 

(1)     Classified based on credit grade assigned when customers were initially approved for financing.
(2)     Percent of total ending managed receivables.
(3)     Represents CAF's Tier 1 originations.
(4)     Represents CAF's Tier 2 and Tier 3 originations.
Allowance For Loan Losses
Allowance for Loan Losses

Three Months Ended November 30, 2023
(In millions)CoreOtherTotal
% (1)
Balance as of beginning of period$433.0 $105.0 $538.0 3.08 
Charge-offs(125.1)(23.6)(148.7)
Recoveries (2)
47.2 7.1 54.3 
Provision for loan losses57.3 11.0 68.3 
Balance as of end of period$412.4 $99.5 $511.9 2.92 

Three Months Ended November 30, 2022
(In millions)CoreOtherTotal
% (1)
Balance as of beginning of period$396.1 $81.4 $477.5 2.92 
Charge-offs(96.3)(16.3)(112.6)
Recoveries (2)
35.7 4.7 40.4 
Provision for loan losses60.9 24.8 85.7 
Balance as of end of period$396.4 $94.6 $491.0 2.95 

Nine Months Ended November 30, 2023
(In millions)CoreOtherTotal
% (1)
Balance as of beginning of period$401.5 $105.7 $507.2 3.02 
Charge-offs(336.9)(64.8)(401.7)
Recoveries (2)
146.2 21.2 167.4 
Provision for loan losses201.6 37.4 239.0 
Balance as of end of period$412.4 $99.5 $511.9 2.92 

Nine Months Ended November 30, 2022
(In millions)CoreOtherTotal
% (1)
Balance as of beginning of period$377.5 $55.5 $433.0 2.77 
Charge-offs(241.9)(35.0)(276.9)
Recoveries (2)
104.7 11.2 115.9 
Provision for loan losses156.1 62.9 219.0 
Balance as of end of period$396.4 $94.6 $491.0 2.95 

(1)     Percent of total ending managed receivables.
(2)     Net of costs incurred to recover vehicle.
Past Due Receivables
Past Due Receivables
As of November 30, 2023
Core ReceivablesOther ReceivablesTotal
(In millions)ABC & OtherTotalC & Other$
% (1)
Current$9,079.3 $5,715.6 $1,294.5 $16,089.4 $398.3 $16,487.7 94.19 
Delinquent loans:
31-60 days past due31.6 270.6 178.1 480.3 68.1 548.4 3.13 
61-90 days past due15.5 165.0 144.2 324.7 62.3 387.0 2.21 
Greater than 90 days past due5.2 37.1 27.5 69.8 12.2 82.0 0.47 
Total past due52.3 472.7 349.8 874.8 142.6 1,017.4 5.81 
Total ending managed receivables$9,131.6 $6,188.3 $1,644.3 $16,964.2 $540.9 $17,505.1 100.00 

As of February 28, 2023
Core ReceivablesOther ReceivablesTotal
(In millions)ABC & OtherTotalC & Other$
% (1)
Current$8,450.3 $5,540.2 $1,612.3 $15,602.8 $327.6 $15,930.4 95.00 
Delinquent loans:
31-60 days past due25.1 225.7 175.4 426.2 60.6 486.8 2.90 
61-90 days past due10.6 120.0 114.5 245.1 42.1 287.2 1.71 
Greater than 90 days past due3.9 27.7 23.5 55.1 8.4 63.5 0.39 
Total past due39.6 373.4 313.4 726.4 111.1 837.5 5.00 
Total ending managed receivables$8,489.9 $5,913.6 $1,925.7 $16,329.2 $438.7 $16,767.9 100.00 
(1)     Percent of total ending managed receivables.
v3.23.4
Fair Value Measurements (Tables)
 9 Months Ended
Nov. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule Of Items Measured At Fair Value On A Recurring Basis
Items Measured at Fair Value on a Recurring Basis
 As of November 30, 2023
(In thousands)Level 1Level 2Total
Assets:   
Money market securities$1,194,255 $— $1,194,255 
Mutual fund investments22,809 — 22,809 
Derivative instruments designated as hedges— 59,137 59,137 
Derivative instruments not designated as hedges— 17,246 17,246 
Total assets at fair value$1,217,064 $76,383 $1,293,447 
Percent of total assets at fair value94.1  %5.9 %100.0 %
Percent of total assets4.5  %0.3 %4.8 %
Liabilities:   
Derivative instruments designated as hedges$— $(6,208)$(6,208)
Total liabilities at fair value$— $(6,208)$(6,208)
Percent of total liabilities—  %— %— %
 As of February 28, 2023
(In thousands)Level 1Level 2Total
Assets:   
Money market securities$865,943 $— $865,943 
Mutual fund investments22,671 — 22,671 
Derivative instruments designated as hedges— 97,328 97,328 
Derivative instruments not designated as hedges— 33,870 33,870 
Total assets at fair value$888,614 $131,198 $1,019,812 
Percent of total assets at fair value87.1  %12.9  %100.0  %
Percent of total assets3.4  %0.5  %3.9  %
Liabilities:   
Total liabilities at fair value$— $— $— 
Percent of total liabilities—  %— %— %
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block]
(In thousands)As of November 30, 2023As of February 28, 2023
Carrying value$400,000 $500,000 
Fair value$376,076 $473,749 
v3.23.4
Cancellation Reserves (Tables)
 9 Months Ended
Nov. 30, 2023
Cancellation Reserves [Abstract]  
Schedule Of Cancellation Reserves Accrual
Cancellation Reserves
 Three Months Ended November 30Nine Months Ended November 30
(In millions)2023202220232022
Balance as of beginning of period$136.6 $148.8 $139.2 $144.7 
Cancellations(22.4)(25.2)(70.2)(80.3)
Provision for future cancellations17.4 20.7 62.6 79.9 
Balance as of end of period$131.6 $144.3 $131.6 $144.3 
v3.23.4
Debt (Tables)
 9 Months Ended
Nov. 30, 2023
Debt Disclosure [Abstract]  
Schedule Of Debt
(In thousands)As of November 30As of February 28
Debt Description (1)
Maturity Date20232023
Revolving credit facility (2)
June 2028$— $— 
Term loan (2)
June 2024300,000 300,000 
Term loan (2)
October 2026699,598 699,493 
3.86% Senior notesApril 2023— 100,000 
4.17% Senior notesApril 2026200,000 200,000 
4.27% Senior notesApril 2028200,000 200,000 
Financing obligationsVarious dates through February 2059519,396 522,526 
Non-recourse notes payableVarious dates through December 203017,029,405 16,360,092 
Total debt18,948,399 18,382,111 
Less: current portion(759,288)(579,468)
Less: unamortized debt issuance costs(25,420)(27,506)
Long-term debt, net$18,163,691 $17,775,137 

(1)    Interest is payable monthly, with the exception of our senior notes, which are payable semi-annually.
(2)    Borrowings accrue interest at variable rates based on SOFR, the federal funds rate, or the prime rate, depending on the type of borrowing.
Schedule of Funding Vehicles [Table Text Block]
(In billions)Capacity
Warehouse facilities:
December 2023 expiration$0.50 
February 2024 expiration2.80 
August 2024 expiration2.30 
Combined warehouse facility limit$5.60 
Unused capacity$1.07 
Non-recourse notes payable outstanding:
Warehouse facilities$4.53 
Asset-backed term funding transactions12.50 
Non-recourse notes payable$17.03 
v3.23.4
Stock and Stock-Based Incentive Plans (Tables)
 9 Months Ended
Nov. 30, 2023
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Schedule of Common Stock Repurchases
Common Stock Repurchases
 Three Months EndedNine Months Ended
 November 30November 30
 2023202220232022
Number of shares repurchased (in thousands)
648.5 30.0 648.5 3,403.9 
Average cost per share$64.60 $87.70 $64.60 $94.95 
Available for repurchase, as of end of period (in millions)
$2,409.4 $2,451.3 $2,409.4 $2,451.3 
Composition of Share-Based Compensation Expense
Composition of Share-Based Compensation Expense
 Three Months EndedNine Months Ended
 November 30November 30
(In thousands)2023202220232022
Cost of sales$692 $333 $3,277 $1,474 
CarMax Auto Finance income1,016 981 2,663 1,394 
Selling, general and administrative expenses19,918 17,213 86,516 63,983 
Share-based compensation expense, before income taxes$21,626 $18,527 $92,456 $66,851 
Composition Of Share-Based Compensation Expense - By Grant Type
Composition of Share-Based Compensation Expense – By Grant Type
 Three Months EndedNine Months Ended
 November 30November 30
(In thousands)2023202220232022
Nonqualified stock options$12,334 $8,968 $40,061 $29,648 
Cash-settled restricted stock units (RSUs)5,306 5,167 33,221 15,521 
Stock-settled market stock units (MSUs)3,531 3,358 13,639 12,234 
Other share-based incentives:
Stock-settled performance stock units (PSUs)(137)209 1,401 5,150 
Restricted stock (RSAs)— 262 307 571 
Stock-settled deferred stock units (DSUs)— — 1,850 1,850 
Employee stock purchase plan592 563 1,977 1,877 
Total other share-based incentives$455 $1,034 $5,535 $9,448 
Share-based compensation expense, before income taxes$21,626 $18,527 $92,456 $66,851 
Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award
Share/Unit Activity
Nine Months Ended November 30, 2023
Equity ClassifiedLiability Classified
(Shares/units in thousands)OptionsMSUsOtherRSUs
Outstanding as of February 28, 20236,776 404 130 1,004 
Granted1,549 186 76 914 
Exercised or vested and converted(476)(187)(11)(489)
Cancelled(175)(19)— (96)
Outstanding as of November 30, 20237,674 384 195 1,333 
Weighted average grant date fair value per share/unit:
Granted$29.10 $99.81 $74.31 $70.68 
Ending outstanding$26.90 $123.67 $88.70 $81.34 
As of November 30, 2023
Unrecognized compensation (in millions)
$54.2 $19.6 $0.8 
v3.23.4
Net Earnings Per Share (Tables)
 9 Months Ended
Nov. 30, 2023
Earnings Per Share [Abstract]  
Basic And Dilutive Net Earnings Per Share Reconciliations
Basic and Dilutive Net Earnings Per Share Reconciliations
 Three Months EndedNine Months Ended
 November 30November 30
(In thousands except per share data)2023202220232022
Net earnings$82,003 $37,580 $428,936 $415,750 
Weighted average common shares outstanding158,446 158,003 158,347 159,044 
Dilutive potential common shares:
Stock options156 268 301 857 
Stock-settled stock units and awards197 265 218 294 
Weighted average common shares and dilutive potential common shares158,799 158,536 158,866 160,195 
Basic net earnings per share$0.52 $0.24 $2.71 $2.61 
Diluted net earnings per share$0.52 $0.24 $2.70 $2.60 
v3.23.4
Accumulated Other Comprehensive Income (Loss) (Tables)
 9 Months Ended
Nov. 30, 2023
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]  
Changes In Accumulated Other Comprehensive Loss By Component
Changes in Accumulated Other Comprehensive Income By Component
   Total
 NetNetAccumulated
 UnrecognizedUnrecognizedOther
 ActuarialHedgeComprehensive
(In thousands, net of income taxes)LossesGainsIncome
Balance as of February 28, 2023$(44,590)$142,459 $97,869 
Other comprehensive loss before reclassifications— (8,623)(8,623)
Amounts reclassified from accumulated other comprehensive income294 (28,873)(28,579)
Other comprehensive income (loss)294 (37,496)(37,202)
Balance as of November 30, 2023$(44,296)$104,963 $60,667 
Changes In And Reclassifications Out Of Accumulated Other Comprehensive Loss
Changes In and Reclassifications Out of Accumulated Other Comprehensive Income
 Three Months Ended November 30Nine Months Ended November 30
(In thousands)2023202220232022
Retirement Benefit Plans:
Actuarial loss amortization reclassifications recognized in net pension expense:
Cost of sales$58 $272 $174 $810 
CarMax Auto Finance income4 19 11 51 
Selling, general and administrative expenses67 346 202 1,048 
Total amortization reclassifications recognized in net pension expense129 637 387 1,909 
Tax expense(31)(155)(93)(465)
Amortization reclassifications recognized in net pension expense, net of tax98 482 294 1,444 
Net change in retirement benefit plan unrecognized actuarial losses, net of tax98 482 294 1,444 
Cash Flow Hedges (Note 5):  
Changes in fair value(10,594)42,521 (11,599)152,731 
Tax benefit (expense)2,640 (10,919)2,976 (39,221)
Changes in fair value, net of tax(7,954)31,602 (8,623)113,510 
Reclassifications to CarMax Auto Finance income(13,321)(8,965)(38,180)(14,951)
Tax benefit3,247 2,302 9,307 3,839 
Reclassification of hedge gains, net of tax(10,074)(6,663)(28,873)(11,112)
Net change in cash flow hedge unrecognized gains, net of tax(18,028)24,939 (37,496)102,398 
Total other comprehensive (loss) income, net of tax$(17,930)$25,421 $(37,202)$103,842 
v3.23.4
Leases (Tables)
 9 Months Ended
Nov. 30, 2023
Leases [Abstract]  
Lease, Cost [Table Text Block]
Three Months Ended November 30Nine Months Ended November 30
(In thousands)2023202220232022
Operating lease cost (1)
$22,772 $22,450 $66,958 $68,381 
Finance lease cost:
Depreciation of lease assets5,266 4,178 14,708 11,701 
Interest on lease liabilities6,610 5,728 19,112 16,129 
Total finance lease cost11,876 9,906 33,820 27,830 
Total lease cost$34,648 $32,356 $100,778 $96,211 

(1) Includes short-term leases and variable lease costs, which are immaterial.
Supplemental Balance Sheet Disclosures [Text Block]
As of November 30As of February 28
(In thousands)Classification20232023
Assets:
Operating lease assetsOperating lease assets$533,387 $545,677 
Finance lease assets
Property and equipment, net (1)
179,381 145,372 
Total lease assets$712,768 $691,049 
Liabilities:
Current:
Operating leasesCurrent portion of operating lease liabilities$56,410 $53,287 
Finance leasesAccrued expenses and other current liabilities20,452 18,788 
Long-term:
Operating leasesOperating lease liabilities, excluding current portion509,141 523,828 
Finance leasesOther liabilities202,024 165,135 
Total lease liabilities$788,027 $761,038 

(1)    Finance lease assets are recorded net of accumulated depreciation of $53.1 million as of November 30, 2023 and $46.7 million as of February 28, 2023.
Other Lease Disclosures [Table Text Block]
As of November 30As of February 28
Lease Term and Discount Rate20232023
Weighted Average Remaining Lease Term (in years)
Operating leases16.0916.35
Finance leases11.5610.84
Weighted Average Discount Rate
Operating leases5.02 %4.91 %
Finance leases17.17 %19.34 %
Nine Months Ended November 30
(In thousands)20232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$66,352 $67,675 
Operating cash flows from finance leases$18,387 $12,747 
Financing cash flows from finance leases$12,177 $10,056 
Lease assets obtained in exchange for lease obligations:
Operating leases$29,080 $29,027 
Finance leases$50,085 $31,344 
Schedule Of Future Minimum Lease Obligations [Table Text Block]
As of November 30, 2023
(In thousands)
Operating Leases (1)
Finance Leases (1)
Fiscal 2024, remaining$20,661 $10,886 
Fiscal 202582,816 45,606 
Fiscal 202677,454 47,365 
Fiscal 202771,099 43,554 
Fiscal 202866,952 36,691 
Thereafter561,850 258,658 
Total lease payments880,832 442,760 
Less: interest(315,281)(220,284)
Present value of lease liabilities$565,551 $222,476 
(1)    Lease payments exclude $5.1 million of legally binding minimum lease payments for leases signed but not yet commenced.
v3.23.4
Segment Reporting (Tables)
 9 Months Ended
Nov. 30, 2023
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
Three Months Ended November 30, 2023
(In thousands)CarMax Sales OperationsOtherEliminationsTotal
Sales and operating revenues$6,111,839 $36,699 $— $6,148,538 
Intersegment sales and operating revenues— 8,100 (8,100)— 
Total sales and operating revenues$6,111,839 $44,799 $(8,100)$6,148,538 
Depreciation and amortization (1)
$393 $5,097 $— $5,490 
Gross profit $586,332 $27,710 $(1,179)$612,863 
Reconciliation to Consolidated Earnings Before Taxes:
CAF Income148,659 
Selling, general and administrative expenses(559,962)
Depreciation and amortization (2)
(60,623)
Interest expense(31,265)
Other income (expense)886 
Earnings before income taxes$110,558 


Three Months Ended November 30, 2022
(In thousands)CarMax Sales OperationsOtherEliminationsTotal
Sales and operating revenues$6,472,702 $33,254 $— $6,505,956 
Intersegment sales and operating revenues— 5,549 (5,549)— 
Total sales and operating revenues$6,472,702 $38,803 $(5,549)$6,505,956 
Depreciation and amortization (1)
$404 $3,735 $— $4,139 
Gross profit $554,057 $23,780 $(1,149)$576,688 
Reconciliation to Consolidated Earnings Before Taxes:
CAF Income152,196 
Selling, general and administrative expenses(591,727)
Depreciation and amortization (2)
(57,377)
Interest expense(30,150)
Other income (expense)363 
Earnings before income taxes$49,993 
Nine Months Ended November 30, 2023
(In thousands)CarMax Sales OperationsOtherEliminationsTotal
Sales and operating revenues$20,807,858 $101,579 $— $20,909,437 
Intersegment sales and operating revenues— 26,165 (26,165)— 
Total sales and operating revenues$20,807,858 $127,744 $(26,165)$20,909,437 
Depreciation and amortization (1)
$1,239 $14,236 $— $15,475 
Gross profit $2,053,228 $77,269 $(3,479)$2,127,018 
Reconciliation to Consolidated Earnings Before Taxes:
CAF Income421,004 
Selling, general and administrative expenses(1,705,493)
Depreciation and amortization (2)
(177,859)
Interest expense(93,316)
Other income (expense)4,730 
Earnings before income taxes$576,084 


Nine Months Ended November 30, 2022
(In thousands)CarMax Sales OperationsOtherEliminationsTotal
Sales and operating revenues$23,860,462 $101,918 $— $23,962,380 
Intersegment sales and operating revenues— 20,219 (20,219)— 
Total sales and operating revenues$23,860,462 $122,137 $(20,219)$23,962,380 
Depreciation and amortization (1)
$1,092 $10,199 $— $11,291 
Gross profit $2,115,631 $77,869 $(4,276)$2,189,224 
Reconciliation to Consolidated Earnings Before Taxes:
CAF Income539,538 
Selling, general and administrative expenses(1,914,508)
Depreciation and amortization (2)
(170,717)
Interest expense(91,670)
Other income (expense)2,303 
Earnings before income taxes$554,170 

(1)    Represents only the portion of depreciation and amortization recorded within Cost of sales, and thus included in the calculation of Gross profit.
(2)    Exclusive of depreciation and amortization recorded within Cost of sales.
v3.23.4
Background (Narrative) (Details)
 9 Months Ended
Nov. 30, 2023
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Reportable segments 2
v3.23.4
Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Disaggregation of Revenue [Line Items]        
Revenue from Contract with Customer, Excluding Assessed Tax $ 6,148.5 $ 6,506.0 $ 20,909.4 $ 23,962.4
Used vehicle sales        
Disaggregation of Revenue [Line Items]        
Revenue from Contract with Customer, Excluding Assessed Tax 4,832.1 5,204.6 16,424.7 18,503.2
Wholesale vehicle sales        
Disaggregation of Revenue [Line Items]        
Revenue from Contract with Customer, Excluding Assessed Tax 1,165.2 1,152.2 4,001.5 4,959.1
Extended protection plan revenues        
Disaggregation of Revenue [Line Items]        
Revenue from Contract with Customer, Excluding Assessed Tax 90.8 91.8 303.8 318.1
Third-party finance (fees)/income, net        
Disaggregation of Revenue [Line Items]        
Revenue from Contract with Customer, Excluding Assessed Tax (1.2) 1.0 (2.4) 7.1
Advertising & subscription revenues [Domain]        
Disaggregation of Revenue [Line Items]        
Revenue from Contract with Customer, Excluding Assessed Tax 36.7 33.3 101.6 101.9
Service revenues        
Disaggregation of Revenue [Line Items]        
Revenue from Contract with Customer, Excluding Assessed Tax 20.3 19.6 63.8 60.8
Other        
Disaggregation of Revenue [Line Items]        
Revenue from Contract with Customer, Excluding Assessed Tax 4.7 3.5 16.4 12.3
Total other sales and revenues        
Disaggregation of Revenue [Line Items]        
Revenue from Contract with Customer, Excluding Assessed Tax $ 151.3 $ 149.2 $ 483.2 $ 500.2
v3.23.4
CarMax Auto Finance (Components Of CarMax Auto Finance Income) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Auto Finance Income [Line Items]        
Interest and fee income $ 426,900 $ 365,400 $ 1,244,300 $ 1,069,300
Interest expense (170,200) (88,800) (464,800) (200,100)
Total interest margin 256,700 276,600 779,500 869,200
Provision for loan losses (68,300) (85,700) (239,000) (219,000)
Total interest margin after provision for loan losses 188,400 190,900 540,500 650,200
Payroll and fringe benefit expense (16,200) (16,100) (49,600) (46,700)
Other Depreciation and Amortization (4,100) (4,000) (12,300) (11,600)
Other direct expenses (19,400) (18,700) (57,600) (52,400)
Total direct expenses (39,700) (38,800) (119,500) (110,700)
CarMax Auto Finance income 148,659 152,196 421,004 539,538
Total average managed receivables $ 17,508,900 $ 16,540,200 $ 17,276,000 $ 16,177,800
Interest and fee income, percent        
Auto Finance Income [Line Items]        
Item as percent of total average managed receivables 9.80% 8.80% 9.60% 8.80%
Interest expense, percent        
Auto Finance Income [Line Items]        
Item as percent of total average managed receivables (3.90%) (2.10%) (3.60%) (1.60%)
Total interest margin, percent        
Auto Finance Income [Line Items]        
Item as percent of total average managed receivables 5.90% 6.70% 6.00% 7.20%
Provision for loan losses, percent        
Auto Finance Income [Line Items]        
Item as percent of total average managed receivables (1.60%) (2.10%) (1.80%) (1.80%)
Total interest margin after provision for loan losses, percent        
Auto Finance Income [Line Items]        
Item as percent of total average managed receivables 4.30% 4.60% 4.20% 5.40%
Payroll and fringe benefit expense, percent        
Auto Finance Income [Line Items]        
Item as percent of total average managed receivables (0.40%) (0.40%) (0.40%) (0.40%)
Other Depreciation and Amortization        
Auto Finance Income [Line Items]        
Item as percent of total average managed receivables (0.10%) (0.10%) (0.10%) (0.10%)
Other direct expenses, percent        
Auto Finance Income [Line Items]        
Item as percent of total average managed receivables (0.40%) (0.50%) (0.40%) (0.40%)
Total direct expenses, percent        
Auto Finance Income [Line Items]        
Item as percent of total average managed receivables (0.90%) (0.90%) (0.90%) (0.90%)
CarMax Auto Finance income, percent        
Auto Finance Income [Line Items]        
Item as percent of total average managed receivables 3.40% 3.70% 3.20% 4.40%
v3.23.4
Auto Loan Receivables (Auto Loan Receivables, Net) (Details) - USD ($)
$ in Thousands
Nov. 30, 2023
Aug. 31, 2023
Feb. 28, 2023
Nov. 30, 2022
Aug. 31, 2022
Feb. 28, 2022
Non-recourse Notes Payable $ 17,029,405   $ 16,360,092      
Financing Receivable, before Allowance for Credit Loss 17,505,100   16,767,900      
Interest Receivable 97,900   78,000      
Other (9,200)   (3,100)      
Financing Receivable, Allowance for Credit Loss 511,924 $ 538,000 507,201 $ 491,000 $ 477,500 $ 433,000
Financing Receivable, after Allowance for Credit Loss 17,081,891   16,341,791      
Asset-backed term funding            
Financing Receivable, before Allowance for Credit Loss 12,053,200   12,242,800      
Warehouse facilities            
Financing Receivable, before Allowance for Credit Loss 4,529,600   3,649,900      
Overcollateralization            
Financing Receivable, before Allowance for Credit Loss 783,400   739,900      
Other managed receivables            
Financing Receivable, before Allowance for Credit Loss $ 138,900   $ 135,300      
v3.23.4
Auto Loan Receivables (Ending Managed Receivables By Major Credit Grade) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Feb. 28, 2023
Financing Receivable, By Major Credit Grade [Line Items]          
Financing Receivable, Originated in Current Fiscal Year $ 5,704.5   $ 5,704.5   $ 7,393.1
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year 5,571.7   5,571.7   5,117.2
Financing Receivable, Originated Two Years before Latest Fiscal Year 3,730.0   3,730.0   2,257.7
Financing Receivable, Originated Three Years before Latest Fiscal Year 1,520.1   1,520.1   1,356.4
Financing Receivable, Originated Four Years before Latest Fiscal Year 763.2   763.2   520.7
Financing Receivable, Originated Five or More Years before Latest Fiscal Year 215.6   215.6   122.8
Financing Receivable, before Allowance for Credit Loss $ 17,505.1   $ 17,505.1   $ 16,767.9
Total ending managed receivables as percentage by major credit grade 100.00%   100.00%   100.00%
Financing Receivable, Allowance for Credit Loss, Writeoff $ 148.7 $ 112.6 $ 401.7 $ 276.9  
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff     120.2    
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff     188.8    
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff     36.9    
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff     18.3    
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff     11.4    
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff     26.1    
Core managed receivables          
Financing Receivable, By Major Credit Grade [Line Items]          
Financing Receivable, Originated in Current Fiscal Year 5,479.5   5,479.5   $ 7,121.1
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year 5,374.1   5,374.1   5,004.7
Financing Receivable, Originated Two Years before Latest Fiscal Year 3,649.3   3,649.3   2,242.7
Financing Receivable, Originated Three Years before Latest Fiscal Year 1,509.6   1,509.6   1,335.3
Financing Receivable, Originated Four Years before Latest Fiscal Year 749.0   749.0   507.5
Financing Receivable, Originated Five or More Years before Latest Fiscal Year 202.7   202.7   117.9
Financing Receivable, before Allowance for Credit Loss $ 16,964.2   $ 16,964.2   $ 16,329.2
Total ending managed receivables as percentage by major credit grade 96.90%   96.90%   97.40%
Financing Receivable, Allowance for Credit Loss, Writeoff $ 125.1 96.3 $ 336.9 241.9  
Other managed receivables          
Financing Receivable, By Major Credit Grade [Line Items]          
Financing Receivable, Allowance for Credit Loss, Writeoff 23.6 $ 16.3 64.8 $ 35.0  
Credit Grade A | Core managed receivables          
Financing Receivable, By Major Credit Grade [Line Items]          
Financing Receivable, Originated in Current Fiscal Year 3,217.4   3,217.4   $ 3,890.9
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year 2,922.2   2,922.2   2,555.3
Financing Receivable, Originated Two Years before Latest Fiscal Year 1,842.0   1,842.0   1,112.0
Financing Receivable, Originated Three Years before Latest Fiscal Year 725.5   725.5   677.1
Financing Receivable, Originated Four Years before Latest Fiscal Year 355.1   355.1   218.3
Financing Receivable, Originated Five or More Years before Latest Fiscal Year 69.4   69.4   36.3
Financing Receivable, before Allowance for Credit Loss $ 9,131.6   $ 9,131.6   $ 8,489.9
Total ending managed receivables as percentage by major credit grade 52.20%   52.20%   50.60%
Credit Grade B | Core managed receivables          
Financing Receivable, By Major Credit Grade [Line Items]          
Financing Receivable, Originated in Current Fiscal Year $ 1,980.5   $ 1,980.5   $ 2,497.5
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year 1,899.8   1,899.8   1,839.9
Financing Receivable, Originated Two Years before Latest Fiscal Year 1,359.4   1,359.4   816.2
Financing Receivable, Originated Three Years before Latest Fiscal Year 564.5   564.5   488.9
Financing Receivable, Originated Four Years before Latest Fiscal Year 289.1   289.1   215.1
Financing Receivable, Originated Five or More Years before Latest Fiscal Year 95.0   95.0   56.0
Financing Receivable, before Allowance for Credit Loss $ 6,188.3   $ 6,188.3   $ 5,913.6
Total ending managed receivables as percentage by major credit grade 35.40%   35.40%   35.30%
Credit Grade C And Other | Core managed receivables          
Financing Receivable, By Major Credit Grade [Line Items]          
Financing Receivable, Originated in Current Fiscal Year $ 281.6   $ 281.6   $ 732.7
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year 552.1   552.1   609.5
Financing Receivable, Originated Two Years before Latest Fiscal Year 447.9   447.9   314.5
Financing Receivable, Originated Three Years before Latest Fiscal Year 219.6   219.6   169.3
Financing Receivable, Originated Four Years before Latest Fiscal Year 104.8   104.8   74.1
Financing Receivable, Originated Five or More Years before Latest Fiscal Year 38.3   38.3   25.6
Financing Receivable, before Allowance for Credit Loss $ 1,644.3   $ 1,644.3   $ 1,925.7
Total ending managed receivables as percentage by major credit grade 9.30%   9.30%   11.50%
Credit Grade C And Other | Other managed receivables          
Financing Receivable, By Major Credit Grade [Line Items]          
Financing Receivable, Originated in Current Fiscal Year $ 225.0   $ 225.0   $ 272.0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year 197.6   197.6   112.5
Financing Receivable, Originated Two Years before Latest Fiscal Year 80.7   80.7   15.0
Financing Receivable, Originated Three Years before Latest Fiscal Year 10.5   10.5   21.1
Financing Receivable, Originated Four Years before Latest Fiscal Year 14.2   14.2   13.2
Financing Receivable, Originated Five or More Years before Latest Fiscal Year 12.9   12.9   4.9
Financing Receivable, before Allowance for Credit Loss $ 540.9   $ 540.9   $ 438.7
Total ending managed receivables as percentage by major credit grade 3.10%   3.10%   2.60%
v3.23.4
Auto Loan Receivables (Allowance for Loan Losses) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Aug. 31, 2023
Feb. 28, 2023
Aug. 31, 2022
Feb. 28, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]                
Financing Receivable, Allowance for Credit Loss $ 511,924 $ 491,000 $ 511,924 $ 491,000 $ 538,000 $ 507,201 $ 477,500 $ 433,000
Financing Receivable, Allowance for Credit Loss, Writeoff (148,700) (112,600) (401,700) (276,900)        
Financing Receivable, Allowance for Credit Loss, Recovery 54,300 40,400 167,400 115,900        
Provision for loan losses $ 68,300 $ 85,700 $ 239,000 $ 219,000        
Allowance For Loan Losses, percent                
Financing Receivable, Allowance for Credit Loss [Line Items]                
Item as percent of total ending managed receivables 2.92% 2.95% 2.92% 2.95% 3.08% 3.02% 2.92% 2.77%
Core managed receivables                
Financing Receivable, Allowance for Credit Loss [Line Items]                
Financing Receivable, Allowance for Credit Loss $ 412,400 $ 396,400 $ 412,400 $ 396,400 $ 433,000 $ 401,500 $ 396,100 $ 377,500
Financing Receivable, Allowance for Credit Loss, Writeoff (125,100) (96,300) (336,900) (241,900)        
Financing Receivable, Allowance for Credit Loss, Recovery 47,200 35,700 146,200 104,700        
Provision for loan losses 57,300 60,900 201,600 156,100        
Other managed receivables                
Financing Receivable, Allowance for Credit Loss [Line Items]                
Financing Receivable, Allowance for Credit Loss 99,500 94,600 99,500 94,600 $ 105,000 $ 105,700 $ 81,400 $ 55,500
Financing Receivable, Allowance for Credit Loss, Writeoff (23,600) (16,300) (64,800) (35,000)        
Financing Receivable, Allowance for Credit Loss, Recovery 7,100 4,700 21,200 11,200        
Provision for loan losses $ 11,000 $ 24,800 $ 37,400 $ 62,900        
v3.23.4
Auto Loan Receivables (Past Due Receivables) (Details) - USD ($)
$ in Millions
Nov. 30, 2023
Feb. 28, 2023
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Current $ 16,487.7 $ 15,930.4
Past due receivables as a percentage of total ending managed receivables 5.81% 5.00%
Financing Receivable, before Allowance for Credit Loss, Noncurrent $ 1,017.4 $ 837.5
Financing Receivable, before Allowance for Credit Loss $ 17,505.1 $ 16,767.9
Item As A Percent Of Total Ending Managed Receivables 100.00% 100.00%
One to Thirty Days Past Due    
Financing Receivable, Past Due [Line Items]    
Past due receivables as a percentage of total ending managed receivables 94.19% 95.00%
Thirty One To Sixty Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past due receivables as a percentage of total ending managed receivables 3.13% 2.90%
Financing Receivable, before Allowance for Credit Loss, Noncurrent $ 548.4 $ 486.8
Sixty One To Ninety Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past due receivables as a percentage of total ending managed receivables 2.21% 1.71%
Financing Receivable, before Allowance for Credit Loss, Noncurrent $ 387.0 $ 287.2
Greater Than Ninety Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past due receivables as a percentage of total ending managed receivables 0.47% 0.39%
Financing Receivable, before Allowance for Credit Loss, Noncurrent $ 82.0 $ 63.5
Core managed receivables    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Current 16,089.4 15,602.8
Financing Receivable, before Allowance for Credit Loss, Noncurrent 874.8 726.4
Financing Receivable, before Allowance for Credit Loss 16,964.2 16,329.2
Core managed receivables | Thirty One To Sixty Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Noncurrent 480.3 426.2
Core managed receivables | Sixty One To Ninety Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Noncurrent 324.7 245.1
Core managed receivables | Greater Than Ninety Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Noncurrent 69.8 55.1
Core managed receivables | Credit Grade A    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Current 9,079.3 8,450.3
Financing Receivable, before Allowance for Credit Loss, Noncurrent 52.3 39.6
Financing Receivable, before Allowance for Credit Loss 9,131.6 8,489.9
Core managed receivables | Credit Grade A | Thirty One To Sixty Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Noncurrent 31.6 25.1
Core managed receivables | Credit Grade A | Sixty One To Ninety Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Noncurrent 15.5 10.6
Core managed receivables | Credit Grade A | Greater Than Ninety Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Noncurrent 5.2 3.9
Core managed receivables | Credit Grade B    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Current 5,715.6 5,540.2
Financing Receivable, before Allowance for Credit Loss, Noncurrent 472.7 373.4
Financing Receivable, before Allowance for Credit Loss 6,188.3 5,913.6
Core managed receivables | Credit Grade B | Thirty One To Sixty Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Noncurrent 270.6 225.7
Core managed receivables | Credit Grade B | Sixty One To Ninety Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Noncurrent 165.0 120.0
Core managed receivables | Credit Grade B | Greater Than Ninety Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Noncurrent 37.1 27.7
Core managed receivables | Credit Grade C And Other    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Current 1,294.5 1,612.3
Financing Receivable, before Allowance for Credit Loss, Noncurrent 349.8 313.4
Financing Receivable, before Allowance for Credit Loss 1,644.3 1,925.7
Core managed receivables | Credit Grade C And Other | Thirty One To Sixty Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Noncurrent 178.1 175.4
Core managed receivables | Credit Grade C And Other | Sixty One To Ninety Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Noncurrent 144.2 114.5
Core managed receivables | Credit Grade C And Other | Greater Than Ninety Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Noncurrent 27.5 23.5
Other managed receivables | Credit Grade C And Other    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Current 398.3 327.6
Financing Receivable, before Allowance for Credit Loss, Noncurrent 142.6 111.1
Financing Receivable, before Allowance for Credit Loss 540.9 438.7
Other managed receivables | Credit Grade C And Other | Thirty One To Sixty Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Noncurrent 68.1 60.6
Other managed receivables | Credit Grade C And Other | Sixty One To Ninety Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Noncurrent 62.3 42.1
Other managed receivables | Credit Grade C And Other | Greater Than Ninety Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Noncurrent $ 12.2 $ 8.4
v3.23.4
Derivative Instruments And Hedging Activities (Narrative) (Details) - Interest Rate Swaps - Cash Flow Hedging - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Nov. 30, 2023
Nov. 30, 2023
Feb. 28, 2023
Designated As Hedging Instrument      
Derivative [Line Items]      
Additional reclassification from AOCL to CAF income within the next 12 months   $ 52.1  
Derivative, Notional Amount $ 5,000.0 5,000.0 $ 4,490.0
Not Designated as Hedging Instrument [Member]      
Derivative [Line Items]      
Derivative, Gain (Loss) on Derivative, Net (6.1) (16.6)  
Derivative, Notional Amount $ 900.0 $ 900.0 $ 1,140.0
v3.23.4
Fair Value Measurements (Schedule Of Items Measured At Fair Value On A Recurring Basis) (Details) - USD ($)
$ in Thousands
Nov. 30, 2023
Feb. 28, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Money market securities $ 1,194,255 $ 865,943
Mutual fund investments 22,809 22,671
Total assets at fair value $ 1,293,447 $ 1,019,812
Percent of total assets at fair value 100.00% 100.00%
Percent of total assets 4.80% 3.90%
Total liabilities at fair value $ (6,208) $ 0
Percent of total liabilities 0.00% 0.00%
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Money market securities $ 1,194,255 $ 865,943
Mutual fund investments 22,809 22,671
Total assets at fair value $ 1,217,064 $ 888,614
Percent of total assets at fair value 94.10% 87.10%
Percent of total assets 4.50% 3.40%
Total liabilities at fair value $ 0 $ 0
Percent of total liabilities 0.00% 0.00%
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Money market securities $ 0 $ 0
Mutual fund investments 0 0
Total assets at fair value $ 76,383 $ 131,198
Percent of total assets at fair value 5.90% 12.90%
Percent of total assets 0.30% 0.50%
Total liabilities at fair value $ (6,208) $ 0
Percent of total liabilities 0.00% 0.00%
Designated As Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Asset $ 59,137 $ 97,328
Liabilities: Derivative instruments (6,208)  
Designated As Hedging Instrument | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Asset 0 0
Liabilities: Derivative instruments 0  
Designated As Hedging Instrument | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Asset 59,137 97,328
Liabilities: Derivative instruments (6,208)  
Not Designated as Hedging Instrument [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Asset 17,246 33,870
Not Designated as Hedging Instrument [Member] | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Asset 0 0
Not Designated as Hedging Instrument [Member] | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Asset $ 17,246 $ 33,870
v3.23.4
Fair Value Measurements Fair Value Measurements (Schedule of Carrying Values and Estimated Fair Values of Debt Instruments) (Details) - USD ($)
$ in Thousands
Nov. 30, 2023
Feb. 28, 2023
Fair Value Disclosures [Abstract]    
Senior Notes $ 400,000 $ 500,000
Debt Instrument, Fair Value Disclosure $ 376,076 $ 473,749
v3.23.4
Cancellation Reserves (Narrative) (Details) - USD ($)
$ in Millions
Nov. 30, 2023
Feb. 28, 2023
Cancellation Reserves [Abstract]    
Cancellation reserves, current portion $ 68.0 $ 76.1
v3.23.4
Cancellation Reserves (Schedule Of Cancellation Reserves Accrual) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]        
Balance as of beginning of period $ 136.6 $ 148.8 $ 139.2 $ 144.7
Cancellations (22.4) (25.2) (70.2) (80.3)
Provision for future cancellations 17.4 20.7 62.6 79.9
Balance as of end of period $ 131.6 $ 144.3 $ 131.6 $ 144.3
v3.23.4
Income Taxes (Narrative) (Details) - USD ($)
$ in Millions
Nov. 30, 2023
Feb. 28, 2023
Federal Income Tax Note    
Unrecognized tax benefits, gross $ 31.1 $ 27.1
v3.23.4
Debt (Schedule Of Debt) (Details) - USD ($)
$ in Thousands
Nov. 30, 2023
Feb. 28, 2023
Debt Instrument [Line Items]    
Long-term Debt $ 18,163,691 $ 17,775,137
Financing Obligations 519,396 522,526
Non-recourse Notes Payable 17,029,405 16,360,092
Total debt 18,948,399 18,382,111
Less: current portion (759,288) (579,468)
Unamortized Debt Issuance Expense (25,420) (27,506)
Revolving Credit Facility [Member]    
Debt Instrument [Line Items]    
Long-term Debt 0 0
Term Loan [Member]    
Debt Instrument [Line Items]    
Long-term Debt 300,000 300,000
3.86% senior notes dues 2023 [Member]    
Debt Instrument [Line Items]    
Long-term Debt 0 100,000
4.17% senior notes due 2026 [Member]    
Debt Instrument [Line Items]    
Long-term Debt 200,000 200,000
4.27% senior notes due 2028 [Member]    
Debt Instrument [Line Items]    
Long-term Debt 200,000 200,000
October 2021 Term Loan    
Debt Instrument [Line Items]    
Long-term Debt $ 699,598 $ 699,493
v3.23.4
Debt (Schedule of Funding Vehicles) (Details) - USD ($)
$ in Thousands
Nov. 30, 2023
Feb. 28, 2023
Debt Instrument [Line Items]    
Non-recourse Notes Payable $ 17,029,405 $ 16,360,092
Warehouse Facility Three    
Debt Instrument [Line Items]    
Warehouse Facilities Maximum Borrowing Capacity 2,800,000  
Warehouse Facility Two    
Debt Instrument [Line Items]    
Warehouse Facilities Maximum Borrowing Capacity 2,300,000  
Warehouse Facility One    
Debt Instrument [Line Items]    
Warehouse Facilities Maximum Borrowing Capacity 500,000  
Warehouse Facilities [Member]    
Debt Instrument [Line Items]    
Warehouse Facilities Maximum Borrowing Capacity 5,600,000  
Debt Instrument, Unused Borrowing Capacity, Amount 1,070,000  
Non-recourse Notes Payable 4,530,000  
Term Securitizations Debt [Member]    
Debt Instrument [Line Items]    
Non-recourse Notes Payable $ 12,500,000  
v3.23.4
Debt (Narrative) (Details) - USD ($)
$ in Thousands
 9 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Feb. 28, 2023
Debt Instrument [Line Items]      
Outstanding Balance $ 18,163,691   $ 17,775,137
Capitalized interest 4,600 $ 3,600  
Credit Facility      
Debt Instrument [Line Items]      
Maximum borrowing capacity 2,000,000    
Unused capacity 2,000,000    
Term Loan [Member]      
Debt Instrument [Line Items]      
Outstanding Balance $ 300,000    
Long-Term Debt, Percentage Bearing Variable Interest, Percentage Rate 6.32%    
Senior Notes [Member]      
Debt Instrument [Line Items]      
Outstanding Balance $ 400,000    
Financing obligation | Minimum      
Debt Instrument [Line Items]      
Initial lease terms, in years 15 years    
Financing obligation | Maximum      
Debt Instrument [Line Items]      
Initial lease terms, in years 20 years    
October 2021 Term Loan      
Debt Instrument [Line Items]      
Outstanding Balance $ 700,000    
Long-Term Debt, Percentage Bearing Variable Interest, Percentage Rate 6.32%    
v3.23.4
Stock and Stock-Based Incentive Plans (Narrative) (Details) - USD ($)
$ in Millions
Nov. 30, 2023
Nov. 30, 2022
Stock and Stock-Based Incentive Plans    
Stock Repurchase Program, Authorized Amount $ 4,000.0  
Share Repurchase Program    
Stock and Stock-Based Incentive Plans    
Available for repurchase, as of end of period $ 2,409.4 $ 2,451.3
v3.23.4
Stock and Stock-Based Incentive Plans (Schedule of Common Stock Repurchases) (Details) - Share Repurchase Program - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 9 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares repurchased 648,500 30,000.0 648,500 3,403,900
Average Cost Per Share $ 64.60 $ 87.70 $ 64.60 $ 94.95
Available for repurchase, as of end of period $ 2,409.4 $ 2,451.3 $ 2,409.4 $ 2,451.3
v3.23.4
Stock and Stock-Based Incentive Plans (Composition of Share-Based Compensation Expense) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Share-based compensation expense, before income taxes $ 21,626 $ 18,527 $ 92,456 $ 66,851
Cost of sales        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Share-based compensation expense, before income taxes 692 333 3,277 1,474
Carmax Auto Finance Income        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Share-based compensation expense, before income taxes 1,016 981 2,663 1,394
Selling, general and administrative expenses        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Share-based compensation expense, before income taxes $ 19,918 $ 17,213 $ 86,516 $ 63,983
v3.23.4
Stock and Stock-Based Incentive Plans (Composition of Share-Based Compensation Expense - By Grant Type) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based compensation expense, before income taxes $ 21,626 $ 18,527 $ 92,456 $ 66,851
Stock options        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based compensation expense, before income taxes 12,334 8,968 40,061 29,648
Cash-settled restricted stock units (RSUs)        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based compensation expense, before income taxes 5,306 5,167 33,221 15,521
Stock-settled market stock units (MSUs)        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based compensation expense, before income taxes 3,531 3,358 13,639 12,234
Stock-settled performance stock units (PSUs)        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based compensation expense, before income taxes (137) 209 1,401 5,150
Restricted Stock [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based compensation expense, before income taxes 0 262 307 571
Stock-settled deferred stock units (DSUs)        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based compensation expense, before income taxes 0 0 1,850 1,850
Employee stock purchase plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based compensation expense, before income taxes 592 563 1,977 1,877
Other share-based incentives        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based compensation expense, before income taxes $ 455 $ 1,034 $ 5,535 $ 9,448
v3.23.4
Stock and Stock-Based Incentive Plans (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 9 Months Ended
Nov. 30, 2023
Feb. 28, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number 7,674 6,776
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross 1,549  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (476)  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period (175)  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value $ 29.10  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value $ 26.90  
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount $ 54.2  
Stock-settled market stock units (MSUs)    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number 384 404
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period 186  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (187)  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period (19)  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value $ 99.81  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value $ 123.67  
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount $ 19.6  
Other share-based incentives    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number 195 130
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period 76  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (11)  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period 0  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value $ 74.31  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value $ 88.70  
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount $ 0.8  
Cash-settled restricted stock units (RSUs)    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number 1,333 1,004
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period 914  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (489)  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period (96)  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value $ 70.68  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value $ 81.34  
v3.23.4
Net Earnings Per Share (Basic And Dilutive Net Earnings Per Share Reconciliations) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Nov. 30, 2023
Aug. 31, 2023
May 31, 2023
Nov. 30, 2022
Aug. 31, 2022
May 31, 2022
Nov. 30, 2023
Nov. 30, 2022
Schedule of Basic and Dilutive Net Earnings Per Share Reconciliation [Line Items]                
Net earnings $ 82,003 $ 118,635 $ 228,298 $ 37,580 $ 125,905 $ 252,265 $ 428,936 $ 415,750
Weighted average common shares outstanding, shares 158,446     158,003     158,347 159,044
Weighted average common shares and dilutive potential common shares, shares 158,799     158,536     158,866 160,195
Basic net earnings per share (in dollars per share) $ 0.52     $ 0.24     $ 2.71 $ 2.61
Diluted net earnings per share (in dollars per share) $ 0.52     $ 0.24     $ 2.70 $ 2.60
Stock options                
Schedule of Basic and Dilutive Net Earnings Per Share Reconciliation [Line Items]                
Dilutive potential common shares, shares 156     268     301 857
Stock-settled stock units and awards                
Schedule of Basic and Dilutive Net Earnings Per Share Reconciliation [Line Items]                
Dilutive potential common shares, shares 197     265     218 294
v3.23.4
Net Earnings Per Share (Narrative) (Details) - shares
 3 Months Ended 9 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Earnings Per Share [Abstract]        
Anti-dilutive securities not included in calculation of diluted net earnings per share 6,263,513 4,934,554 5,732,651 1,917,727
v3.23.4
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Nov. 30, 2023
Aug. 31, 2023
May 31, 2023
Nov. 30, 2022
Aug. 31, 2022
May 31, 2022
Nov. 30, 2023
Nov. 30, 2022
Schedule of Accumulated Other Comprehensive Loss [Line Items]                
Beginning balance     $ 97,869       $ 97,869  
Other comprehensive loss before reclassifications             (8,623)  
Amounts reclassified from accumulated other comprehensive income             (28,579)  
Other comprehensive income (loss), net of taxes $ (17,930) $ 17,267 (36,539) $ 25,421 $ 26,107 $ 52,314 (37,202) $ 103,842
Ending balance 60,667           60,667  
Net Unrecognized Actuarial Losses                
Schedule of Accumulated Other Comprehensive Loss [Line Items]                
Beginning balance     (44,590)       (44,590)  
Other comprehensive loss before reclassifications             0  
Amounts reclassified from accumulated other comprehensive income             294  
Other comprehensive income (loss), net of taxes             294  
Ending balance (44,296)           (44,296)  
Net Unrecognized Hedge Gains (Losses)                
Schedule of Accumulated Other Comprehensive Loss [Line Items]                
Beginning balance     $ 142,459       142,459  
Other comprehensive loss before reclassifications             (8,623)  
Amounts reclassified from accumulated other comprehensive income             (28,873)  
Other comprehensive income (loss), net of taxes             (37,496)  
Ending balance $ 104,963           $ 104,963  
v3.23.4
Accumulated Other Comprehensive Income (Loss) (Changes In and Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Total amortization reclassifications recognized in net pension expense $ 129 $ 637 $ 387 $ 1,909
Tax expense (31) (155) (93) (465)
Amortization reclassifications recognized in net pension expense, net of tax 98 482 294 1,444
Net change in retirement benefit plan unrecognized actuarial losses, net of tax 98 482 294 1,444
Changes in fair value (10,594) 42,521 (11,599) 152,731
Tax benefit (expense) 2,640 (10,919) 2,976 (39,221)
Changes in fair value, net of tax (7,954) 31,602 (8,623) 113,510
Reclassifications to CarMax Auto Finance income (13,321) (8,965) (38,180) (14,951)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax 3,247 2,302 9,307 3,839
Reclassification of hedge gains, net of tax (10,074) (6,663) (28,873) (11,112)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax (18,028) 24,939 (37,496) 102,398
Total other comprehensive (loss) income, net of tax (17,930) 25,421 (37,202) 103,842
Cost of sales        
Total amortization reclassifications recognized in net pension expense 58 272 174 810
CarMax Auto Finance income        
Total amortization reclassifications recognized in net pension expense 4 19 11 51
Selling, general and administrative expenses        
Total amortization reclassifications recognized in net pension expense $ 67 $ 346 $ 202 $ 1,048
v3.23.4
Accumulated Other Comprehensive Income (Loss) (Narrative) (Details) - USD ($)
$ in Millions
Nov. 30, 2023
Feb. 28, 2023
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]    
Deferred tax $ 20.4 $ 32.6
v3.23.4
Leases Narrative (Details)
 9 Months Ended
Nov. 30, 2023
Minimum  
Lessee, Lease, Description [Line Items]  
Lease renewal term 1 year
Real Estate Lease Term 5 years
Equipment Lease Term 3 years
Maximum  
Lessee, Lease, Description [Line Items]  
Lease renewal term 20 years
Real Estate Lease Term 20 years
Equipment Lease Term 8 years
v3.23.4
Leases Components of Lease Cost (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Leases [Abstract]        
Operating Lease, Cost $ 22,772 $ 22,450 $ 66,958 $ 68,381
Finance Lease, Right-of-Use Asset, Amortization 5,266 4,178 14,708 11,701
Finance Lease, Interest Expense 6,610 5,728 19,112 16,129
Finance Lease, Cost 11,876 9,906 33,820 27,830
Lease, Cost $ 34,648 $ 32,356 $ 100,778 $ 96,211
v3.23.4
Leases - Supplemental Balance Sheet (Details) - USD ($)
$ in Thousands
Nov. 30, 2023
Feb. 28, 2023
Leases [Abstract]    
Operating lease assets $ 533,387 $ 545,677
Finance Lease, Right-of-Use Asset 179,381 145,372
Total lease assets 712,768 691,049
Current portion of operating lease liabilities 56,410 53,287
Finance Lease, Liability, Current 20,452 18,788
Operating lease liabilities, excluding current portion 509,141 523,828
Finance Lease, Liability, Noncurrent 202,024 165,135
Total lease liabilities 788,027 761,038
Finance Lease Accumulated Depreciation $ 53,100 $ 46,700
v3.23.4
Lease Term and Discount Rate (Details)
Nov. 30, 2023
Rate
Feb. 28, 2023
Rate
Leases [Abstract]    
Operating Lease, Weighted Average Remaining Lease Term 16 years 1 month 2 days 16 years 4 months 6 days
Finance Lease, Weighted Average Remaining Lease Term 11 years 6 months 21 days 10 years 10 months 2 days
Operating Lease, Weighted Average Discount Rate, Percent 5.02% 4.91%
Finance Lease, Weighted Average Discount Rate, Percent 17.17% 19.34%
v3.23.4
Lease Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 9 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Leases [Abstract]    
Operating Lease, Payments $ 66,352 $ 67,675
Finance Lease, Interest Payment on Liability 18,387 12,747
Finance Lease, Principal Payments 12,177 10,056
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability 29,080 29,027
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability $ 50,085 $ 31,344
v3.23.4
Leases Maturities of Lease Liabilities (Details)
$ in Thousands
Nov. 30, 2023
USD ($)
Leases [Abstract]  
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year $ 20,661
Lessee, Operating Lease, Liability, Payments, Due Year Two 82,816
Lessee, Operating Lease, Liability, Payments, Due Year Three 77,454
Lessee, Operating Lease, Liability, Payments, Due Year Four 71,099
Lessee, Operating Lease, Liability, Payments, Due Year Five 66,952
Lessee, Operating Lease, Liability, Payments, Due after Year Five 561,850
Lessee, Operating Lease, Liability, Payments, Due 880,832
Lessee, Operating Lease, Liability, Undiscounted Excess Amount (315,281)
Operating Lease, Liability 565,551
Finance Lease, Liability, Payments, Remainder of Fiscal Year 10,886
Finance Lease, Liability, Payments, Due Year Two 45,606
Finance Lease, Liability, Payments, Due Year Three 47,365
Finance Lease, Liability, Payments, Due Year Four 43,554
Finance Lease, Liability, Payments, Due Year Five 36,691
Finance Lease, Liability, Payments, Due after Year Five 258,658
Finance Lease, Liability, Payment, Due 442,760
Finance Lease, Liability, Undiscounted Excess Amount (220,284)
Finance Lease, Liability 222,476
lessee, minimum lease payments for leases not yet commenced $ 5,100
v3.23.4
Contingent Liabilities (Details) - USD ($)
$ in Millions
Nov. 30, 2023
Feb. 28, 2023
Commitments and Contingencies Disclosure [Abstract]    
Liability associated with guarantee $ 25.4 $ 27.1
v3.23.4
Segment Reporting (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]        
NET SALES AND OPERATING REVENUES $ 6,148,538 $ 6,505,956 $ 20,909,437 $ 23,962,380
Depreciation and amortization     193,528 202,655
Gross Profit 612,863 576,688 2,127,018 2,189,224
CARMAX AUTO FINANCE INCOME  148,659 152,196 421,004 539,538
Selling, General and Administrative Expense (559,962) (591,727) (1,705,493) (1,914,508)
Depreciation, Depletion and Amortization, Nonproduction (60,623) (57,377) (177,859) (170,717)
Interest expense (31,265) (30,150) (93,316) (91,670)
Other income 886 363 4,730 2,303
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest 110,558 49,993 576,084 554,170
TOTAL COST OF SALES        
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]        
Depreciation and amortization 5,490 4,139 15,475 11,291
Intersegment Eliminations        
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]        
NET SALES AND OPERATING REVENUES (8,100) (5,549) (26,165) (20,219)
Gross Profit (1,179) (1,149) (3,479) (4,276)
CarMax Sales Operations        
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]        
NET SALES AND OPERATING REVENUES 6,111,839 6,472,702 20,807,858 23,860,462
Gross Profit 586,332 554,057 2,053,228 2,115,631
CarMax Sales Operations | TOTAL COST OF SALES        
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]        
Depreciation and amortization 393 404 1,239 1,092
CarMax Sales Operations | Operating Segments        
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]        
NET SALES AND OPERATING REVENUES 6,111,839 6,472,702 20,807,858 23,860,462
Other Segments        
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]        
NET SALES AND OPERATING REVENUES 36,699 33,254 101,579 101,918
Gross Profit 27,710 23,780 77,269 77,869
Other Segments | TOTAL COST OF SALES        
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]        
Depreciation and amortization 5,097 3,735 14,236 10,199
Other Segments | Intersegment Eliminations        
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]        
NET SALES AND OPERATING REVENUES 8,100 5,549 26,165 20,219
Other Segments | Operating Segments        
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]        
NET SALES AND OPERATING REVENUES $ 44,799 $ 38,803 $ 127,744 $ 122,137