CARMAX INC, 10-Q filed on 6/27/2024
Quarterly Report
v3.24.1.1.u2
Document And Entity Information - shares
 3 Months Ended
May 31, 2024
Jun. 25, 2024
Entity Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date May 31, 2024  
Document Transition Report false  
Entity File Number 1-31420  
Entity Registrant Name CARMAX, INC.  
Entity Central Index Key 0001170010  
Current Fiscal Year End Date --02-28  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q1  
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   156,078,952
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Consolidated Statements Of Earnings - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
May 31, 2024
May 31, 2023
SALES AND OPERATING REVENUES:    
NET SALES AND OPERATING REVENUES $ 7,113,397 $ 7,687,063
TOTAL COST OF SALES 6,321,502 6,869,673
GROSS PROFIT  791,895 817,390
CARMAX AUTO FINANCE INCOME  146,970 137,358
Selling, general and administrative expenses 638,578 559,837
Depreciation, Depletion and Amortization, Nonproduction 61,869 58,419
Interest expense 31,362 30,466
Other expense (income) 416 (1,214)
Earnings before income taxes 206,640 307,240
Income tax provision 54,200 78,942
NET EARNINGS  $ 152,440 $ 228,298
WEIGHTED AVERAGE COMMON SHARES:    
Basic, shares 157,161 158,116
Diluted, shares 157,706 158,561
NET EARNINGS PER SHARE:    
Basic (in dollars per share) $ 0.97 $ 1.44
Diluted (in dollars per share) $ 0.97 $ 1.44
Used vehicle sales    
SALES AND OPERATING REVENUES:    
NET SALES AND OPERATING REVENUES $ 5,677,476 $ 6,001,471
TOTAL COST OF SALES 5,181,979 5,486,846
Wholesale vehicle sales    
SALES AND OPERATING REVENUES:    
NET SALES AND OPERATING REVENUES 1,256,439 1,514,363
TOTAL COST OF SALES 1,099,311 1,346,538
Total other sales and revenues    
SALES AND OPERATING REVENUES:    
NET SALES AND OPERATING REVENUES 179,482 171,229
TOTAL COST OF SALES $ 40,212 $ 36,289
NET SALES AND OPERATING REVENUES    
Percentage of Sales    
Item as a percent of net sales and operating revenues 100.00% 100.00%
TOTAL COST OF SALES    
Percentage of Sales    
Item as a percent of net sales and operating revenues 88.90% 89.40%
GROSS PROFIT     
Percentage of Sales    
Item as a percent of net sales and operating revenues 11.10% 10.60%
CARMAX AUTO FINANCE INCOME     
Percentage of Sales    
Item as a percent of net sales and operating revenues 2.10% 1.80%
Selling, general and administrative expenses    
Percentage of Sales    
Item as a percent of net sales and operating revenues 9.00% 7.30%
Depreciation and Amortization, Nonproduction    
Percentage of Sales    
Item as a percent of net sales and operating revenues 0.90% 0.80%
Interest expense    
Percentage of Sales    
Item as a percent of net sales and operating revenues 0.40% 0.40%
Other expense (income)    
Percentage of Sales    
Item as a percent of net sales and operating revenues 0.00% 0.00%
Earnings before income taxes    
Percentage of Sales    
Item as a percent of net sales and operating revenues 2.90% 4.00%
Income tax provision    
Percentage of Sales    
Item as a percent of net sales and operating revenues 0.80% 1.00%
NET EARNINGS     
Percentage of Sales    
Item as a percent of net sales and operating revenues 2.10% 3.00%
NET SALES AND OPERATING REVENUES | Used vehicle sales    
Percentage of Sales    
Item as a percent of net sales and operating revenues 79.80% 78.10%
NET SALES AND OPERATING REVENUES | Wholesale vehicle sales    
Percentage of Sales    
Item as a percent of net sales and operating revenues 17.70% 19.70%
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% 2.20%
TOTAL COST OF SALES | Used vehicle sales    
Percentage of Sales    
Item as a percent of net sales and operating revenues 72.80% 71.40%
TOTAL COST OF SALES | Wholesale vehicle sales    
Percentage of Sales    
Item as a percent of net sales and operating revenues 15.50% 17.50%
TOTAL COST OF SALES | Total other sales and revenues    
Percentage of Sales    
Item as a percent of net sales and operating revenues 0.60% 0.50%
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Consolidated Statements Of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended
May 31, 2024
May 31, 2023
Statement of Comprehensive Income [Abstract]    
NET EARNINGS $ 152,440 $ 228,298
Other comprehensive income (loss), net of taxes:    
Net change in retirement benefit plan unrecognized actuarial losses 84 98
Net change in cash flow hedge unrecognized gains 2,315 (36,637)
Other comprehensive income (loss), net of taxes 2,399 (36,539)
TOTAL COMPREHENSIVE INCOME $ 154,839 $ 191,759
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Consolidated Balance Sheets - USD ($)
$ in Thousands
May 31, 2024
Feb. 29, 2024
CURRENT ASSETS:    
Cash and cash equivalents $ 218,931 $ 574,142
Restricted cash from collections on auto loans receivable 536,407 506,648
Accounts receivable, net 212,370 221,153
Inventory 3,772,885 3,678,070
Other current assets 229,714 246,581
TOTAL CURRENT ASSETS  4,970,307 5,226,594
Auto loans receivable, net of allowance for loan losses of $493,064 and $482,790 as of May 31, 2024 and February 29, 2024, respectively 17,268,321 17,011,844
Property and equipment, net of accumulated depreciation of $1,877,474 and $1,813,783 as of May 31, 2024 and February 29, 2024, respectively 3,734,736 3,665,530
Deferred Income Tax Assets, Net 100,104 98,790
Operating lease assets 509,043 520,717
Goodwill 141,258 141,258
Other assets 518,325 532,064
TOTAL ASSETS  27,242,094 27,196,797
CURRENT LIABILITIES:    
Accounts payable 911,348 933,708
Accrued expenses and other current liabilities 456,277 523,971
Accrued income taxes 24,792 0
Current portion of operating lease liabilities 57,534 57,161
Current portion of long-term debt 21,550 313,282
Current portion of non-recourse notes payable 514,394 484,167
TOTAL CURRENT LIABILITIES  1,985,895 2,312,289
Long-term debt, excluding current portion 1,591,366 1,602,355
Non-recourse notes payable, excluding current portion 16,626,011 16,357,301
Operating lease liabilities, excluding current portion 484,632 496,210
Other liabilities 387,320 354,902
TOTAL LIABILITIES  21,075,224 21,123,057
Commitments and contingent liabilities
SHAREHOLDERS’ EQUITY:    
Common stock, $0.50 par value; 350,000,000 shares authorized; 156,352,956 and 157,611,939 shares issued and outstanding as of May 31, 2024 and February 29, 2024, respectively 78,176 78,806
Capital in excess of par value 1,834,218 1,808,746
Accumulated other comprehensive income 61,678 59,279
Retained earnings 4,192,798 4,126,909
TOTAL SHAREHOLDERS’ EQUITY  6,166,870 6,073,740
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY  $ 27,242,094 $ 27,196,797
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Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
May 31, 2024
Feb. 29, 2024
Statement of Financial Position [Abstract]    
Financing Receivable, Allowance for Credit Loss $ 493,064 $ 482,790
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment $ 1,877,474 $ 1,813,783
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 156,352,956 157,611,939
Common stock, shares outstanding 156,352,956 157,611,939
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Consolidated Statements Of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended
May 31, 2024
May 31, 2023
OPERATING ACTIVITIES:    
Net earnings $ 152,440 $ 228,298
Adjustments to reconcile net earnings to net cash used in operating activities:    
Depreciation and amortization 69,244 62,998
Share-based compensation expense 48,098 36,384
Provision for loan losses 81,226 80,890
Provision for cancellation reserves 24,343 24,070
Deferred income tax benefit (2,036) (7,127)
Other 2,545 2,976
Net decrease (increase) in:    
Accounts receivable, net 8,783 (22,439)
Inventory (94,815) (355,078)
Other current assets 32,881 30,923
Auto loans receivable, net (337,703) (483,964)
Other assets (3,797) 634
Net (decrease) increase in:    
Accounts payable, accrued expenses and other current liabilities and accrued income taxes (75,206) 239,276
Other liabilities (23,692) (23,126)
Net Cash Provided by (Used in) Operating Activities (117,689) (185,285)
INVESTING ACTIVITIES:    
Capital expenditures (103,914) (136,719)
Proceeds from disposal of property and equipment 1 1,171
Purchases of investments (2,093) (1,228)
Sales and returns of investments 136 17
Net Cash Provided by (Used in) Investing Activities (105,870) (136,759)
FINANCING ACTIVITIES:    
Proceeds from issuances of long-term debt 0 98,600
Payments on long-term debt (303,080) (201,377)
Cash paid for debt issuance costs (5,668) (3,608)
Payments on finance lease obligations (4,548) (3,785)
Issuances of non-recourse notes payable 3,676,000 3,125,929
Payments on non-recourse notes payable (3,376,447) (2,706,222)
Repurchase and retirement of common stock (106,850) (3,931)
Equity issuances 8,209 989
Net Cash Provided by (Used in) Financing Activities (112,384) 306,595
Decrease in cash, cash equivalents, and restricted cash (335,943) (15,449)
Cash, cash equivalents, and restricted cash at beginning of year 1,250,410 951,004
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD 914,467 935,555
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEETS:    
Cash and cash equivalents 218,931 264,247
Restricted cash from collections on auto loans receivable 536,407 506,465
Restricted cash included in other assets 159,129 164,843
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD $ 914,467 $ 935,555
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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, 2023   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. 29, 2024 157,611,939 157,612,000      
BALANCE at Feb. 29, 2024 $ 6,073,740 $ 78,806 1,808,746 4,126,909 59,279
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net earnings 152,440     152,440  
Other Comprehensive Income (Loss), Net of Tax 2,399       2,399
APIC, Share-based Payment Arrangement, Increase for Cost Recognition 36,708   36,708    
Stock Repurchased and Retired During Period, Shares   (1,446,000)      
Stock Repurchased and Retired During Period, Value $ (104,889) $ (723) (17,615) (86,551)  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period 138,000 138,000      
Stock Issued During Period, Value, Stock Options Exercised $ 8,209 $ 69 8,140    
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture   49,000      
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture $ (1,737) $ 24 (1,761)    
BALANCE, SHARES at May. 31, 2024 156,352,956 156,353,000      
BALANCE at May. 31, 2024 $ 6,166,870 $ 78,176 $ 1,834,218 $ 4,192,798 $ 61,678
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Supplemental Cash Flow Information
 3 Months Ended
May 31, 2024
Supplemental Cash Flow Elements [Abstract]  
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] Supplemental Cash Flow Information
Supplemental disclosures of cash flow information:
Three Months Ended May 31
(In thousands)20242023
Non-cash investing and financing activities:  
Increase (decrease) in accrued capital expenditures$2,659 $(16,136)

See Note 13 for supplemental cash flow information related to leases.
Cash Flow, Supplemental Disclosures [Text Block]
Three Months Ended May 31
(In thousands)20242023
Non-cash investing and financing activities:  
Increase (decrease) in accrued capital expenditures$2,659 $(16,136)
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Supplemental Cash Flow Information Supplemental Cash Flow Information
 3 Months Ended
May 31, 2024
Supplemental Cash Flow Elements [Abstract]  
Cash Flow, Supplemental Disclosures [Text Block]
Three Months Ended May 31
(In thousands)20242023
Non-cash investing and financing activities:  
Increase (decrease) in accrued capital expenditures$2,659 $(16,136)
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Supplemental Cash Flow Information Supplemental Cash Flow Information - USD ($)
$ in Thousands
 3 Months Ended
May 31, 2024
May 31, 2023
Supplemental Cash Flow Elements [Abstract]    
Increase (decrease) in accrued capital expenditures $ 2,659 $ 16,136
Capital Expenditures Incurred but Not yet Paid $ (2,659) $ (16,136)
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Background
 3 Months Ended
May 31, 2024
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”). At that time, Edmunds was identified as a non-reportable operating segment and has been presented as “Other” in the Segment Information footnote in our prior period financial statements. Since the acquisition, Edmunds’ business strategy has become increasingly integrated with that of CarMax Sales Operations. Beginning in the first quarter of fiscal 2025, the chief operating decision maker (“CODM”) assessed the financial performance related to Edmunds’ operations together with the rest of the CarMax Sales Operations segment. As a result, as of May 31, 2024, the company realigned its operating segments to be consistent with the manner in which the CODM assesses performance and makes resource allocations. The company now operates in two operating segments, CarMax Sales Operations and CAF, both of which continue to be reportable segments.
The operating segment change did not impact the company’s consolidated financial statements but did impact our previous segment footnote disclosure. The Segment Information footnote is no longer presented, as the previous disclosures were for the purpose of presenting the Edmunds operating segment separate from CarMax Sales Operations. The current and prior period required disclosures related to our reportable segments are included elsewhere within the consolidated financial statements and related footnotes. The performance of our CarMax Sales Operations segment is reviewed by our CODM at the gross profit level, the components of which are presented within the consolidated statement of earnings. The 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.
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”); advertising and subscription services; 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 29, 2024 (the “2024 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 2024 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.
Adopted in the Current Period
In June 2022, the Financial Accounting Standards Board (“FASB”) issued an accounting pronouncement (ASU 2022-03) related to accounting for equity securities. The amendments in the update clarify the guidance for measuring the fair value of equity securities subject to contractual restrictions that prohibit the sale of equity securities, as well as introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value. This update is effective for annual periods beginning after December 15, 2023, and interim periods within those fiscal years. We adopted this pronouncement for our fiscal year beginning March 1, 2024, and it did not have a material effect on our consolidated financial statements.
In March 2023, the FASB issued an accounting pronouncement (ASU 2023-01) related to accounting for leases between entities under common control. The amendments in this update that apply to public business entities clarify the accounting for leasehold improvements associated with common control leases. This update is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. We adopted this pronouncement for our fiscal year beginning March 1, 2024, and it did not have a material effect on our consolidated financial statements.
In March 2023, the FASB issued an accounting pronouncement (ASU 2023-02) related to accounting for investments in tax credit structures using the proportional amortization method. The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. This update is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. We adopted this pronouncement for our fiscal year beginning March 1, 2024, and it did not have a material effect on our consolidated financial statements.
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Revenue
 3 Months Ended
May 31, 2024
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 May 31
(In millions)20242023
Used vehicle sales$5,677.5 $6,001.5 
Wholesale vehicle sales1,256.4 1,514.4 
Other sales and revenues:
Extended protection plan revenues118.8 111.2 
Third-party finance (fees)/income, net(1.7)0.3 
Advertising & subscription revenues (1)
34.7 31.4 
Service revenues22.7 22.1 
Other5.0 6.2 
Total other sales and revenues179.5 171.2 
Total net sales and operating revenues$7,113.4 $7,687.1 

(1)     Excludes intercompany sales and operating revenues that have been eliminated in consolidation.

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 10-day 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 May 31, 2024 and February 29, 2024, 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.
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CarMax Auto Finance
 3 Months Ended
May 31, 2024
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 May 31
(In millions)2024
% (1)
2023
% (1)
Interest margin:
Interest and fee income$452.5 10.3 $400.5 9.4 
Interest expense(182.3)(4.2)(142.6)(3.4)
Total interest margin270.2 6.2 257.9 6.1 
Provision for loan losses(81.2)(1.9)(80.9)(1.9)
Total interest margin after provision for loan losses189.0 4.3 177.0 4.2 
Direct expenses:
Payroll and fringe benefit expense(18.6)(0.4)(16.6)(0.4)
Depreciation and amortization(4.2)(0.1)(4.1)(0.1)
Other direct expenses(19.2)(0.4)(18.9)(0.4)
Total direct expenses(42.0)(1.0)(39.6)(0.9)
CarMax Auto Finance income$147.0 3.3 $137.4 3.2 
Total average managed receivables$17,551.2 $17,003.4 
(1)     Annualized percentage of total average managed receivables.
v3.24.1.1.u2
Auto Loan Receivables
 3 Months Ended
May 31, 2024
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 $17.17 billion as of May 31, 2024, and $16.87 billion as of February 29, 2024. 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 May 31As of February 29
(In millions)20242024
Asset-backed term funding$12,475.5 $12,638.2 
Warehouse facilities4,176.6 3,744.6 
Overcollateralization (1)
813.2 790.9 
Other managed receivables (2)
176.3 218.1 
Total ending managed receivables17,641.6 17,391.8 
Accrued interest and fees100.3 90.9 
Other19.5 11.9 
Less: allowance for loan losses(493.1)(482.8)
Auto loans receivable, net$17,268.3 $17,011.8 

(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 May 31, 2024
Fiscal Year of Origination (1)
(In millions)20252024202320222021Prior to 2021Total
% (2)
Core managed receivables (3):
A$1,298.6 $3,535.2 $2,388.4 $1,428.4 $507.2 $212.1 $9,369.9 53.1 
B650.6 2,172.1 1,582.3 1,092.5 423.8 217.2 6,138.5 34.8 
C and other94.0 318.2 451.2 357.7 166.0 86.7 1,473.8 8.4 
Total core managed receivables2,043.2 6,025.5 4,421.9 2,878.6 1,097.0 516.0 16,982.2 96.3 
Other managed receivables (4):
C and other131.6 278.1 159.7 65.3 8.2 16.5 659.4 3.7 
Total ending managed receivables$2,174.8 $6,303.6 $4,581.6 $2,943.9 $1,105.2 $532.5 $17,641.6 100.0 
Gross charge-offs$0.4 $40.1 $50.8 $27.4 $8.1 $6.3 $133.1 
As of February 29, 2024
Fiscal Year of Origination (1)
(In millions)20242023202220212020Prior to 2020Total
% (2)
Core managed receivables (3):
A$3,922.7 $2,660.6 $1,635.1 $614.0 $268.7 $40.0 $9,141.1 52.6 
B2,370.8 1,738.8 1,225.9 493.3 233.4 61.3 6,123.5 35.2 
C and other344.1 498.6 400.3 192.2 86.6 26.9 1,548.7 8.9 
Total core managed receivables6,637.6 4,898.0 3,261.3 1,299.5 588.7 128.2 16,813.3 96.7 
Other managed receivables (4):
C and other299.0 176.3 72.6 9.3 12.1 9.2 578.5 3.3 
Total ending managed receivables$6,936.6 $5,074.3 $3,333.9 $1,308.8 $600.8 $137.4 $17,391.8 100.0 
Gross charge-offs$111.0 $248.6 $129.8 $41.0 $19.7 $11.4 $561.5 

(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 May 31, 2024 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 method (“method”), 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 method 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 method 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 May 31, 2024
(In millions)CoreOtherTotal
% (1)
Balance as of beginning of period$389.7 $93.1 $482.8 2.78 
Charge-offs(113.0)(20.1)(133.1)
Recoveries (2)
53.9 8.3 62.2 
Provision for loan losses66.0 15.2 81.2 
Balance as of end of period$396.6 $96.5 $493.1 2.79 

Three Months Ended May 31, 2023
(In millions)CoreOtherTotal
% (1)
Balance as of beginning of period$401.5 $105.7 $507.2 3.02 
Charge-offs(93.1)(16.7)(109.8)
Recoveries (2)
50.5 6.6 57.1 
Provision for loan losses68.6 12.3 80.9 
Balance as of end of period$427.5 $107.9 $535.4 3.11 

(1)     Percent of total ending managed receivables.
(2)     Net of costs incurred to recover vehicle.
 
During the first three months of fiscal 2025, the allowance for loan losses as a percent of total ending managed receivables increased by 1 basis point. The increase was primarily due to CAF’s expanded investment in Tier 2, partially offset by the previously implemented tightened underwriting standards in response to the current environment. The increase in net charge-offs primarily reflects continued customer hardship in the current economic environment. The allowance for loan losses as of May 31, 2024 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 uncollectable. 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 May 31, 2024
Core ReceivablesOther ReceivablesTotal
(In millions)ABC & OtherTotalC & Other$
% (1)
Current$9,316.9 $5,672.3 $1,180.7 $16,169.9 $522.7 $16,692.6 94.62 
Delinquent loans:
31-60 days past due33.9 272.2 159.5 465.6 71.3 536.9 3.04 
61-90 days past due14.1 157.7 112.8 284.6 54.9 339.5 1.93 
Greater than 90 days past due5.0 36.3 20.8 62.1 10.5 72.6 0.41 
Total past due53.0 466.2 293.1 812.3 136.7 949.0 5.38 
Total ending managed receivables$9,369.9 $6,138.5 $1,473.8 $16,982.2 $659.4 $17,641.6 100.00 
As of February 29, 2024
Core ReceivablesOther ReceivablesTotal
(In millions)ABC & OtherTotalC & Other$
% (1)
Current$9,088.1 $5,666.3 $1,243.7 $15,998.1 $447.1 $16,445.2 94.56 
Delinquent loans:
31-60 days past due32.1 271.3 162.9 466.3 68.1 534.4 3.07 
61-90 days past due15.1 149.4 118.5 283.0 53.0 336.0 1.93 
Greater than 90 days past due5.8 36.5 23.6 65.9 10.3 76.2 0.44 
Total past due53.0 457.2 305.0 815.2 131.4 946.6 5.44 
Total ending managed receivables$9,141.1 $6,123.5 $1,548.7 $16,813.3 $578.5 $17,391.8 100.00 
(1)     Percent of total ending managed receivables.
v3.24.1.1.u2
Derivative Instruments And Hedging Activities
 3 Months Ended
May 31, 2024
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 $51.7 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 months ended May 31, 2024, we recognized expense of $3.2 million in CAF income representing these changes in fair value.
As of May 31, 2024 and February 29, 2024, we had interest rate swaps outstanding with a combined notional amount of $4.99 billion and $5.21 billion, respectively, that were designated as cash flow hedges of interest rate risk. As of May 31, 2024 and February 29, 2024, we had interest rate swaps with a combined notional amount of $529.0 million and $704.0 million, 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.
v3.24.1.1.u2
Fair Value Measurements
 3 Months Ended
May 31, 2024
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 May 31, 2024
(In thousands)Level 1Level 2Total
Assets:   
Money market securities$836,465 $— $836,465 
Mutual fund investments25,175 — 25,175 
Derivative instruments designated as hedges— 51,354 51,354 
Derivative instruments not designated as hedges— 9,913 9,913 
Total assets at fair value$861,640 $61,267 $922,907 
Percent of total assets at fair value93.4  %6.6 %100.0 %
Percent of total assets3.2  %0.2 %3.4 %
Liabilities:   
Derivative instruments designated as hedges$— $(1,019)$(1,019)
Total liabilities at fair value$— $(1,019)$(1,019)
Percent of total liabilities—  %— %— %
 As of February 29, 2024
(In thousands)Level 1Level 2Total
Assets:   
Money market securities$1,164,270 $— $1,164,270 
Mutual fund investments24,312 — 24,312 
Derivative instruments designated as hedges— 45,761 45,761 
Derivative instruments not designated as hedges— 13,064 13,064 
Total assets at fair value$1,188,582 $58,825 $1,247,407 
Percent of total assets at fair value95.3  %4.7  %100.0  %
Percent of total assets4.4  %0.2  %4.6  %
Liabilities:   
Derivative instruments designated as hedges$— $(2,302)$(2,302)
Total liabilities at fair value$— $(2,302)$(2,302)
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 May 31, 2024 and February 29, 2024, respectively, are as follows:
(In thousands)As of May 31, 2024As of February 29, 2024
Carrying value$400,000 $400,000 
Fair value$380,320 $380,249 
v3.24.1.1.u2
Cancellation Reserves
 3 Months Ended
May 31, 2024
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 May 31
(In millions)20242023
Balance as of beginning of period$128.3 $139.2 
Cancellations(21.3)(24.6)
Provision for future cancellations24.3 24.1 
Balance as of end of period$131.3 $138.7 
 
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 May 31, 2024 and February 29, 2024, the current portion of cancellation reserves was $70.9 million and $69.7 million, respectively.
v3.24.1.1.u2
Income Taxes
 3 Months Ended
May 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
We had $30.0 million of gross unrecognized tax benefits as of May 31, 2024, and $28.8 million as of February 29, 2024.  There were no significant changes to the gross unrecognized tax benefits as reported for the fiscal year ended February 29, 2024.
Within the next 12 months, it is reasonably possible that statutes will expire and previously unrecognized tax benefits related to the prepayment of services provided by related entities will be recognized. Recognition of the benefits will decrease gross unrecognized tax benefits by approximately $14.0 million and would not materially impact our effective tax rate.
v3.24.1.1.u2
Debt
 3 Months Ended
May 31, 2024
Debt Disclosure [Abstract]  
Debt Debt
(In thousands)As of May 31As of February 29
Debt Description (1)
Maturity Date20242024
Revolving credit facility (2)
June 2028$— $— 
Term loan (2)
June 2024— 300,000 
Term loan (2)
October 2026699,668 699,633 
4.17% Senior notesApril 2026200,000 200,000 
4.27% Senior notesApril 2028200,000 200,000 
Financing obligationsVarious dates through February 2059513,707 516,544 
Non-recourse notes payableVarious dates through December 203017,166,525 16,866,972 
Total debt18,779,900 18,783,149 
Less: current portion(535,944)(797,449)
Less: unamortized debt issuance costs(26,579)(26,044)
Long-term debt, net$18,217,377 $17,959,656 

(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 May 31, 2024, the unused capacity of $2.00 billion was fully available to us.
Term Loans. The $300 million term loan was paid in May 2024. Borrowings under the $700 million term loan are available for working capital and general corporate purposes. The interest rate on our term loan was 6.33% as of May 31, 2024. 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. Borrowings under our unsecured senior notes totaling $400 million are available for working capital and general corporate purposes. As of May 31, 2024, 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 May 31, 2024 are as follows:
(In billions)Capacity
Warehouse facilities:
August 2024 expiration$2.30 
December 2024 expiration0.70 
March 2025 expiration3.10 
Combined warehouse facility limit$6.10 
Unused capacity$1.92 
Non-recourse notes payable outstanding:
Warehouse facilities$4.18 
Asset-backed term funding transactions12.99 
Non-recourse notes payable$17.17 

We generally enter into warehouse facility agreements for one-year terms and typically renew the agreements annually. The return requirements of warehouse facility investors could fluctuate significantly depending on market conditions.  At renewal, the cost, structure and capacity of the facilities could change.  These changes could have a significant impact on our funding costs.
In June 2024, we entered into a $625 million asset-backed term funding transaction for our new non-prime securitization program. Going forward, we plan to expand our current asset-backed securitization program from a single issuance to one that more broadly incorporates the funding of CAF’s receivables across distinct prime and non-prime segments. We believe this new program will enable us to fund incremental originations and support future CAF growth across the credit spectrum by creating additional funding capacity, driving additional finance income for the business over time.
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 three months ended May 31, 2024 and 2023, we capitalized interest of $1.5 million and $1.4 million, respectively. 
Financial Covenants.  The credit facility, term loan 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 May 31, 2024, we were in compliance with these financial covenants and our non-recourse funding vehicles were in compliance with these performance triggers.
v3.24.1.1.u2
Stock and Stock-Based Incentive Plans
 3 Months Ended
May 31, 2024
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Stock and Stock-Based Incentive Plans Stock and Stock-Based Incentive Plans
(A)Share Repurchase Program
As of May 31, 2024, a total of $4.0 billion of board authorizations for repurchases of our common stock was outstanding, with no expiration date, of which $2.26 billion remained available for repurchase.
Common Stock Repurchases
 Three Months Ended
 May 31
 20242023
Number of shares repurchased (in thousands)
1,445.8 — 
Average cost per share$71.91 $— 
Available for repurchase, as of end of period (in millions)
$2,256.2 $2,451.3 

(B)Stock Incentive Plans
We maintain long-term incentive plans for management, certain employees and the nonemployee members of our board. The plans allow for the granting of equity-based compensation awards, including nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock awards, stock- and cash-settled restricted stock units, stock grants or a combination of awards. To date, we have not awarded any incentive stock options.
The majority of associates who receive share-based compensation awards primarily receive cash-settled restricted stock units. Senior management and other key associates receive awards of nonqualified stock options, stock-settled restricted stock units and/or restricted stock awards. Nonemployee directors are eligible to receive awards of nonqualified stock options, stock grants, stock-settled restricted stock units and/or restricted stock awards. Excluding stock grants and stock-settled deferred stock units, all share-based compensation awards, including any associated dividend rights, are subject to forfeiture.
Nonqualified Stock Options. Nonqualified stock options are awards that allow the recipient to purchase shares of our common stock at a fixed price. Stock options are granted at an exercise price equal to the fair market value of our common stock on the grant date. The stock options generally vest annually in equal amounts over four years. These options expire seven years after the date of the grant.
Cash-Settled Restricted Stock Units. Also referred to as restricted stock units, or RSUs, these are awards that entitle the holder to a cash payment equal to the fair market value of a share of our common stock for each unit granted. Conversion generally occurs annually in equal amounts over three years. However, the cash payment per RSU will not be greater than 200% or less than 75% of the fair market value of a share of our common stock on the grant date. The initial grant date fair values are based on the closing prices of our common stock on the grant dates. RSUs are liability-classified awards and do not have voting rights.
Stock-Settled Market Stock Units. Also referred to as market stock units, or MSUs, these are restricted stock unit awards with market conditions granted to eligible key associates that are converted into between zero and two shares of common stock for each unit granted. Conversion generally occurs at the end of a three-year vesting period. The conversion ratio is calculated by dividing the average closing price of our stock during the final 40 trading days of the three-year vesting period by our stock price on the grant date, with the resulting quotient capped at two. This quotient is then multiplied by the number of MSUs granted to yield the number of shares awarded. The grant date fair values are determined using a Monte-Carlo simulation and are based on the expected market price of our common stock on the vesting date and the expected number of converted common shares. MSUs do not have voting rights.
Other Share-Based Incentives
Stock-Settled Performance Stock Units. Also referred to as performance stock units, or PSUs, these are restricted stock unit awards with performance conditions granted to eligible key associates that are converted into between zero and two shares of common stock for each unit granted. Conversion generally occurs at the end of a three-year vesting period. For the fiscal 2022 grants, the first- and second-year periods of the fiscal 2023 grants and the first-year period of the fiscal 2024 grants, the conversion ratio is based on the company reaching certain performance target levels set by the board at the beginning of each
one-year period, with the resulting quotients subject to meeting a minimum 25% threshold and capped at 200%. For the third-year period of the fiscal 2023 grants, the second-year period of the fiscal 2024 grants and the fiscal 2025 grants, the conversion ratio is based on the company reaching certain target levels set by the board, with the resulting quotients subject to meeting a minimum 50% threshold and capped at 200%. These quotients are then multiplied by the number of PSUs granted to yield the number of shares awarded.
For the first year of the fiscal 2022 awards, these targets were based on annual pretax diluted earnings per share excluding any unrealized gains or losses on equity investments in private companies; the board certified a performance adjustment factor of 200%. For the second- and third-year periods of the fiscal 2022 awards, the first- and second-year periods of the fiscal 2023 awards and the first-year period of the fiscal 2024 awards, the performance targets are based on annual pretax diluted earnings per share, excluding any unrealized gains or losses on equity investments in private companies, and market share. For the second-year period of the fiscal 2022 awards and the first-year period of the fiscal 2023 awards, the board certified a performance adjustment factor of 4%. For the third-year period of the fiscal 2022 awards, the second-year period of the fiscal 2023 grants and the first-year period of the fiscal 2024 grants, the board certified a performance adjustment factor of 38%. For the third-year period of the fiscal 2023 awards and the second-year period of the fiscal 2024 awards, the performance targets are based on the annual pre-tax earnings, excluding any unrealized gains or losses on equity investments in private companies and any significant non-recurring non-cash gains or losses. For the third-year period of the fiscal 2024 awards, the remaining awarded 23,551 PSUs do not qualify as grants under ASC 718 as mutual understanding of the target performance levels are either not fully set or have not been set. For the fiscal 2025 awards, the performance targets are based on the cumulative three-year pretax earnings, excluding any unrealized gains or losses on equity investments in private companies and any significant non-recurring non-cash gains or losses.
PSUs do not have voting rights. The grant date fair values are based on the closing prices of our common stock on the grant dates. As of May 31, 2024, 296,997 units were outstanding at a weighted average grant date fair value per share of $71.11.
Stock-Settled Deferred Stock Units. Also referred to as deferred stock units, or DSUs, these are restricted stock unit awards granted to non-employee members of our board that are converted into one share of common stock for each unit granted. Conversion occurs at the end of the one-year vesting period unless the director has exercised the option to defer conversion until separation of service to the company. The grant date fair values are based on the closing prices of our common stock on the grant dates. DSUs have no voting rights. As of May 31, 2024, 97,001 units were outstanding at a weighted average grant date fair value of $89.80.
Restricted Stock Awards. Restricted stock awards, or RSAs, are awards of our common stock that are subject to specified restrictions that generally lapse after a one- to three-year period from the date of the grant. The grant date fair values are based on the closing prices of our common stock on the grant dates. Participants holding restricted stock are entitled to vote on matters submitted to holders of our common stock for a vote. As of May 31, 2024, there were no RSAs outstanding.
(C)Share-Based Compensation
Composition of Share-Based Compensation Expense
 Three Months Ended
 May 31
(In thousands)20242023
Cost of sales$1,009 $1,390 
CarMax Auto Finance income685 449 
Selling, general and administrative expenses47,101 35,304 
Share-based compensation expense, before income taxes$48,795 $37,143 
Composition of Share-Based Compensation Expense – By Grant Type
 Three Months Ended
 May 31
(In thousands)20242023
Nonqualified stock options$18,944 $14,077 
Cash-settled restricted stock units (RSUs)11,390 15,111 
Stock-settled market stock units (MSUs)7,580 6,224 
Other share-based incentives:
Stock-settled performance stock units (PSUs)10,184 741 
Restricted stock (RSAs)— 231 
Employee stock purchase plan697 759 
Total other share-based incentives$10,881 $1,731 
Share-based compensation expense, before income taxes$48,795 $37,143 

Unrecognized Share-Based Compensation Expense – By Grant Type

 As of May 31, 2024
Weighted Average
UnrecognizedRemaining
CompensationRecognition Life
(Costs in millions)Costs(Years)
Nonqualified stock options$55.0 2.4
Stock-settled market stock units28.5 2.1
Other share-based incentives:
  Stock-settled performance stock units6.8 2.4
Total other share-based incentives6.8 2.4
Total$90.3 2.3

We recognize compensation expense for stock options, MSUs, PSUs, DSUs and RSAs on a straight-line basis (net of estimated forfeitures) over the requisite service period, which is generally the vesting period of the award.  The PSU expense is adjusted for any change in management’s assessment of the performance target level that is probable of being achieved. The variable expense associated with RSUs is recognized over their vesting period (net of estimated forfeitures) and is calculated based on the closing price of our common stock on the last trading day of each reporting period. 
The total costs for matching contributions for our employee stock purchase plan are included in share-based compensation expense.  There were no capitalized share-based compensation costs as of or for the three months ended May 31, 2024 or 2023.
Stock Option Activity
   Weighted 
  WeightedAverage 
  AverageRemainingAggregate
 Number ofExerciseContractualIntrinsic
(Shares and intrinsic value in thousands)SharesPriceLife (Years)Value
Outstanding as of February 29, 20247,393 $82.03 
Options granted1,218 $67.21 
Options exercised(138)$59.39 
Options forfeited or expired(70)$83.25 
Outstanding as of May 31, 20248,403 $80.25 4.0$11,182 
Exercisable as of May 31, 20245,317 $82.02 2.8$7,295 
Stock Option Information
Three Months Ended May 31
20242023
Options granted1,218,305 1,491,326 
Weighted average grant date fair value per share$29.18 $29.1 
Cash received from options exercised (in millions)
$8.2 $1.0 
Intrinsic value of options exercised (in millions)
$1.8 $0.2 
Realized tax benefits (in millions)
$0.4 $0.1 

For stock options, the fair value of each award is estimated as of the date of grant using a binomial valuation model.  In computing the value of the option, the binomial model considers characteristics of fair-value option pricing that are not available for consideration under a closed-form valuation model (for example, the Black-Scholes model), such as the contractual term of the option, the probability that the option will be exercised prior to the end of its contractual life and the probability of termination or retirement of the option holder.  For this reason, we believe that the binomial model provides a fair value that is more representative of actual experience and future expected experience than the value calculated using a closed-form model.  Estimates of fair value are not intended to predict actual future events or the value ultimately realized by the recipients of share-based awards.
Assumptions Used to Estimate Option Values
 Three Months Ended May 31
 20242023
Dividend yield 0.0 % 0.0 %
Expected volatility factor (1)
39.6 %-46.1 %44.1 %-44.7 %
Weighted average expected volatility45.4 %44.6 %
Risk-free interest rate (2)
4.6 %-5.4 %3.6 %-5.2 %
Expected term (in years) (3)
 4.7 4.6

(1)Measured using historical daily price changes of our stock for a period corresponding to the term of the options and the implied volatility derived from the market prices of traded options on our stock.
(2)Based on the U.S. Treasury yield curve at the time of grant.
(3)Represents the estimated number of years that options will be outstanding prior to exercise.
Cash-Settled Restricted Stock Unit Activity
  Weighted
  Average
 Number ofGrant Date
(Units in thousands)UnitsFair Value
Outstanding as of February 29, 20241,297 $81.42 
Stock units granted915 $67.21 
Stock units vested and converted(538)$88.54 
Stock units cancelled(26)$76.27 
Outstanding as of May 31, 20241,648 $71.29 
Cash-Settled Restricted Stock Unit Information
Three Months Ended May 31
20242023
Stock units granted914,848 900,511 
Initial weighted average grant date fair value per share$67.21 $70.48 
Payments (before payroll tax withholdings) upon vesting (in millions)
$39.6 $36.3 
Realized tax benefits (in millions)
$9.8 $9.0 

Expected Cash Settlement Range Upon Restricted Stock Unit Vesting
 As of May 31, 2024
(In thousands)
Minimum (1)
Maximum (1)
Fiscal 2026$37,620 $100,320 
Fiscal 202725,580 68,214 
Fiscal 202812,835 34,228 
Total expected cash settlements$76,035 $202,762 

(1)Net of estimated forfeitures.

Stock-Settled Market Stock Unit Activity
  Weighted
  Average
 Number ofGrant Date
(Units in thousands)UnitsFair Value
Outstanding as of February 29, 2024383 $123.73 
Stock units granted234 $95.65 
Stock units vested and converted(75)$176.46 
Stock units cancelled(10)$110.47 
Outstanding as of May 31, 2024532 $104.23 

Stock-Settled Market Stock Unit Information
Three Months Ended May 31
20242023
Stock units granted233,963 178,232 
Weighted average grant date fair value per share$95.65 $99.49 
Realized tax benefits (in millions)
$0.7 $2.1 
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Net Earnings Per Share
 3 Months Ended
May 31, 2024
Earnings Per Share [Abstract]  
Net Earnings Per Share Net Earnings Per Share
Basic net earnings per share is computed by dividing net earnings available for basic common shares by the weighted average number of shares of common stock outstanding.  Diluted net earnings per share is computed by dividing net earnings available for diluted common shares by the sum of weighted average number of shares of common stock outstanding and dilutive potential common stock.  Diluted net earnings per share is calculated using the “if-converted” treasury stock method.
Basic and Dilutive Net Earnings Per Share Reconciliations
 Three Months Ended
 May 31
(In thousands except per share data)20242023
Net earnings$152,440 $228,298 
Weighted average common shares outstanding157,161 158,116 
Dilutive potential common shares:
Stock options282 164 
Stock-settled stock units and awards263 281 
Weighted average common shares and dilutive potential common shares157,706 158,561 
Basic net earnings per share$0.97 $1.44 
Diluted net earnings per share$0.97 $1.44 
 
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 May 31, 2024 and 2023, options to purchase 4,796,089 shares and 5,425,830 shares of common stock, respectively, were not included.
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Accumulated Other Comprehensive Income (Loss)
 3 Months Ended
May 31, 2024
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 29, 2024$(37,116)$96,395 $59,279 
Other comprehensive income before reclassifications— 13,281 13,281 
Amounts reclassified from accumulated other comprehensive income84 (10,966)(10,882)
Other comprehensive income 84 2,315 2,399 
Balance as of May 31, 2024$(37,032)$98,710 $61,678 
 
Changes In and Reclassifications Out of Accumulated Other Comprehensive Income
 Three Months Ended May 31
(In thousands)20242023
Retirement Benefit Plans:
Actuarial loss amortization reclassifications recognized in net pension expense:
Cost of sales$50 $58 
CarMax Auto Finance income4 4 
Selling, general and administrative expenses57 67 
Total amortization reclassifications recognized in net pension expense111 129 
Tax expense(27)(31)
Amortization reclassifications recognized in net pension expense, net of tax84 98 
Net change in retirement benefit plan unrecognized actuarial losses, net of tax84 98 
Cash Flow Hedges (Note 5):  
Changes in fair value17,509 (36,007)
Tax (expense) benefit(4,228)8,871 
Changes in fair value, net of tax13,281 (27,136)
Reclassifications to CarMax Auto Finance income(14,498)(12,564)
Tax benefit3,532 3,063 
Reclassification of hedge gains, net of tax(10,966)(9,501)
Net change in cash flow hedge unrecognized gains, net of tax2,315 (36,637)
Total other comprehensive income (loss), net of tax$2,399 $(36,539)
 
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 $20.0 million as of May 31, 2024 and $19.3 million as of February 29, 2024.
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Leases (Notes)
 3 Months Ended
May 31, 2024
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 May 31
(In thousands)20242023
Operating lease cost (1)
$23,228 $21,947 
Finance lease cost:
Depreciation of lease assets3,822 4,535 
Interest on lease liabilities6,671 6,095 
Total finance lease cost10,493 10,630 
Total lease cost$33,721 $32,577 

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

Supplemental balance sheet information related to leases was as follows:
As of May 31As of February 29
(In thousands)Classification20242024
Assets:
Operating lease assetsOperating lease assets$509,043 $520,717 
Finance lease assets
Property and equipment, net (1)
202,052 174,998 
Total lease assets$711,095 $695,715 
Liabilities:
Current:
Operating leasesCurrent portion of operating lease liabilities$57,534 $57,161 
Finance leasesAccrued expenses and other current liabilities21,102 20,877 
Long-term:
Operating leasesOperating lease liabilities, excluding current portion484,632 496,210 
Finance leasesOther liabilities227,528 198,759 
Total lease liabilities$790,796 $773,007 

(1)    Finance lease assets are recorded net of accumulated depreciation of $59.4 million as of May 31, 2024 and $55.5 million as of February 29, 2024.

Lease term and discount rate information related to leases was as follows:
As of May 31As of February 29
Lease Term and Discount Rate20242024
Weighted Average Remaining Lease Term (in years)
Operating leases16.0416.07
Finance leases12.8911.43
Weighted Average Discount Rate
Operating leases5.08 %5.05 %
Finance leases15.66 %17.16 %
Supplemental cash flow information related to leases was as follows:
Three Months Ended May 31
(In thousands)20242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$22,760 $21,103 
Operating cash flows from finance leases$6,432 $5,912 
Financing cash flows from finance leases$4,548 $3,785 
Lease assets obtained in exchange for lease obligations:
Operating leases$2,780 $9,752 
Finance leases$33,315 $14,498 

Maturities of lease liabilities were as follows:
As of May 31, 2024
(In thousands)
Operating Leases (1)
Finance Leases (1)
Fiscal 2025, remaining$62,791 $34,677 
Fiscal 202678,362 50,625 
Fiscal 202772,027 46,929 
Fiscal 202867,898 40,141 
Fiscal 202946,072 32,976 
Thereafter517,505 290,365 
Total lease payments844,655 495,713 
Less: interest(302,489)(247,083)
Present value of lease liabilities$542,166 $248,630 
(1)    Lease payments exclude $4.7 million of legally binding minimum lease payments for leases signed but not yet commenced.
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Contingent Liabilities
 3 Months Ended
May 31, 2024
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. The parties have agreed to settle the matter for a nominal amount.
The company is a class member in a consolidated and settled class action lawsuit (In re: Takata Airbag Product Liability Litigation (U.S. District Court, Southern District of Florida)) against Toyota, Mazda, Subaru, BMW, Honda, Nissan, Ford and Volkswagen related to the economic loss associated with defective Takata airbags installed as original equipment in certain model vehicles from model years 2000-2019. In April 2020, CarMax received $40.3 million in net recoveries from the Toyota, Mazda, Subaru, BMW, Honda and Nissan settlement funds. In January 2022, CarMax received $3.8 million in net recoveries from the Ford settlement funds. On April 21, 2023, CarMax received $59.3 million in net recoveries from residual undisbursed funds in the Toyota, Mazda, Subaru, BMW, Honda and Nissan settlements. On August 9, 2023, CarMax received $7.9 million in additional residual funds in the BMW, Mazda, and Nissan settlements. CarMax remains a class member for residual funds in the Ford settlement. The Volkswagen settlement has not yet been resolved. We are unable to make a reasonable estimate of the amount or range of gain that could result from CarMax’s participation in the Ford residual or Volkswagen matters.
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 $30.5 million as of May 31, 2024, and $30.9 million as of February 29, 2024, and is included in accrued expenses and other current liabilities.
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Background Basis of Accounting (Policies)
 3 Months Ended
May 31, 2024
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”). At that time, Edmunds was identified as a non-reportable operating segment and has been presented as “Other” in the Segment Information footnote in our prior period financial statements. Since the acquisition, Edmunds’ business strategy has become increasingly integrated with that of CarMax Sales Operations. Beginning in the first quarter of fiscal 2025, the chief operating decision maker (“CODM”) assessed the financial performance related to Edmunds’ operations together with the rest of the CarMax Sales Operations segment. As a result, as of May 31, 2024, the company realigned its operating segments to be consistent with the manner in which the CODM assesses performance and makes resource allocations. The company now operates in two operating segments, CarMax Sales Operations and CAF, both of which continue to be reportable segments.
The operating segment change did not impact the company’s consolidated financial statements but did impact our previous segment footnote disclosure. The Segment Information footnote is no longer presented, as the previous disclosures were for the purpose of presenting the Edmunds operating segment separate from CarMax Sales Operations. The current and prior period required disclosures related to our reportable segments are included elsewhere within the consolidated financial statements and related footnotes. The performance of our CarMax Sales Operations segment is reviewed by our CODM at the gross profit level, the components of which are presented within the consolidated statement of earnings. The 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.
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”); advertising and subscription services; 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 29, 2024 (the “2024 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 2024 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
Adopted in the Current Period
In June 2022, the Financial Accounting Standards Board (“FASB”) issued an accounting pronouncement (ASU 2022-03) related to accounting for equity securities. The amendments in the update clarify the guidance for measuring the fair value of equity securities subject to contractual restrictions that prohibit the sale of equity securities, as well as introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value. This update is effective for annual periods beginning after December 15, 2023, and interim periods within those fiscal years. We adopted this pronouncement for our fiscal year beginning March 1, 2024, and it did not have a material effect on our consolidated financial statements.
In March 2023, the FASB issued an accounting pronouncement (ASU 2023-01) related to accounting for leases between entities under common control. The amendments in this update that apply to public business entities clarify the accounting for leasehold improvements associated with common control leases. This update is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. We adopted this pronouncement for our fiscal year beginning March 1, 2024, and it did not have a material effect on our consolidated financial statements.
In March 2023, the FASB issued an accounting pronouncement (ASU 2023-02) related to accounting for investments in tax credit structures using the proportional amortization method. The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. This update is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. We adopted this pronouncement for our fiscal year beginning March 1, 2024, and it did not have a material effect on our consolidated financial statements.
v3.24.1.1.u2
Revenue (Tables)
 3 Months Ended
May 31, 2024
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
Disaggregation of Revenue
Three Months Ended May 31
(In millions)20242023
Used vehicle sales$5,677.5 $6,001.5 
Wholesale vehicle sales1,256.4 1,514.4 
Other sales and revenues:
Extended protection plan revenues118.8 111.2 
Third-party finance (fees)/income, net(1.7)0.3 
Advertising & subscription revenues (1)
34.7 31.4 
Service revenues22.7 22.1 
Other5.0 6.2 
Total other sales and revenues179.5 171.2 
Total net sales and operating revenues$7,113.4 $7,687.1 

(1)     Excludes intercompany sales and operating revenues that have been eliminated in consolidation.
v3.24.1.1.u2
CarMax Auto Finance (Tables)
 3 Months Ended
May 31, 2024
CarMax Auto Finance Income [Abstract]  
Components Of CarMax Auto Finance Income
Components of CAF Income
Three Months Ended May 31
(In millions)2024
% (1)
2023
% (1)
Interest margin:
Interest and fee income$452.5 10.3 $400.5 9.4 
Interest expense(182.3)(4.2)(142.6)(3.4)
Total interest margin270.2 6.2 257.9 6.1 
Provision for loan losses(81.2)(1.9)(80.9)(1.9)
Total interest margin after provision for loan losses189.0 4.3 177.0 4.2 
Direct expenses:
Payroll and fringe benefit expense(18.6)(0.4)(16.6)(0.4)
Depreciation and amortization(4.2)(0.1)(4.1)(0.1)
Other direct expenses(19.2)(0.4)(18.9)(0.4)
Total direct expenses(42.0)(1.0)(39.6)(0.9)
CarMax Auto Finance income$147.0 3.3 $137.4 3.2 
Total average managed receivables$17,551.2 $17,003.4 
(1)     Annualized percentage of total average managed receivables.
v3.24.1.1.u2
Auto Loan Receivables (Tables)
 3 Months Ended
May 31, 2024
Receivables [Abstract]  
Auto Loan Receivables, Net
Auto Loans Receivable, Net
 As of May 31As of February 29
(In millions)20242024
Asset-backed term funding$12,475.5 $12,638.2 
Warehouse facilities4,176.6 3,744.6 
Overcollateralization (1)
813.2 790.9 
Other managed receivables (2)
176.3 218.1 
Total ending managed receivables17,641.6 17,391.8 
Accrued interest and fees100.3 90.9 
Other19.5 11.9 
Less: allowance for loan losses(493.1)(482.8)
Auto loans receivable, net$17,268.3 $17,011.8 

(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 May 31, 2024
Fiscal Year of Origination (1)
(In millions)20252024202320222021Prior to 2021Total
% (2)
Core managed receivables (3):
A$1,298.6 $3,535.2 $2,388.4 $1,428.4 $507.2 $212.1 $9,369.9 53.1 
B650.6 2,172.1 1,582.3 1,092.5 423.8 217.2 6,138.5 34.8 
C and other94.0 318.2 451.2 357.7 166.0 86.7 1,473.8 8.4 
Total core managed receivables2,043.2 6,025.5 4,421.9 2,878.6 1,097.0 516.0 16,982.2 96.3 
Other managed receivables (4):
C and other131.6 278.1 159.7 65.3 8.2 16.5 659.4 3.7 
Total ending managed receivables$2,174.8 $6,303.6 $4,581.6 $2,943.9 $1,105.2 $532.5 $17,641.6 100.0 
Gross charge-offs$0.4 $40.1 $50.8 $27.4 $8.1 $6.3 $133.1 
As of February 29, 2024
Fiscal Year of Origination (1)
(In millions)20242023202220212020Prior to 2020Total
% (2)
Core managed receivables (3):
A$3,922.7 $2,660.6 $1,635.1 $614.0 $268.7 $40.0 $9,141.1 52.6 
B2,370.8 1,738.8 1,225.9 493.3 233.4 61.3 6,123.5 35.2 
C and other344.1 498.6 400.3 192.2 86.6 26.9 1,548.7 8.9 
Total core managed receivables6,637.6 4,898.0 3,261.3 1,299.5 588.7 128.2 16,813.3 96.7 
Other managed receivables (4):
C and other299.0 176.3 72.6 9.3 12.1 9.2 578.5 3.3 
Total ending managed receivables$6,936.6 $5,074.3 $3,333.9 $1,308.8 $600.8 $137.4 $17,391.8 100.0 
Gross charge-offs$111.0 $248.6 $129.8 $41.0 $19.7 $11.4 $561.5 

(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 May 31, 2024
(In millions)CoreOtherTotal
% (1)
Balance as of beginning of period$389.7 $93.1 $482.8 2.78 
Charge-offs(113.0)(20.1)(133.1)
Recoveries (2)
53.9 8.3 62.2 
Provision for loan losses66.0 15.2 81.2 
Balance as of end of period$396.6 $96.5 $493.1 2.79 

Three Months Ended May 31, 2023
(In millions)CoreOtherTotal
% (1)
Balance as of beginning of period$401.5 $105.7 $507.2 3.02 
Charge-offs(93.1)(16.7)(109.8)
Recoveries (2)
50.5 6.6 57.1 
Provision for loan losses68.6 12.3 80.9 
Balance as of end of period$427.5 $107.9 $535.4 3.11 

(1)     Percent of total ending managed receivables.
(2)     Net of costs incurred to recover vehicle.
Past Due Receivables
Past Due Receivables
As of May 31, 2024
Core ReceivablesOther ReceivablesTotal
(In millions)ABC & OtherTotalC & Other$
% (1)
Current$9,316.9 $5,672.3 $1,180.7 $16,169.9 $522.7 $16,692.6 94.62 
Delinquent loans:
31-60 days past due33.9 272.2 159.5 465.6 71.3 536.9 3.04 
61-90 days past due14.1 157.7 112.8 284.6 54.9 339.5 1.93 
Greater than 90 days past due5.0 36.3 20.8 62.1 10.5 72.6 0.41 
Total past due53.0 466.2 293.1 812.3 136.7 949.0 5.38 
Total ending managed receivables$9,369.9 $6,138.5 $1,473.8 $16,982.2 $659.4 $17,641.6 100.00 
As of February 29, 2024
Core ReceivablesOther ReceivablesTotal
(In millions)ABC & OtherTotalC & Other$
% (1)
Current$9,088.1 $5,666.3 $1,243.7 $15,998.1 $447.1 $16,445.2 94.56 
Delinquent loans:
31-60 days past due32.1 271.3 162.9 466.3 68.1 534.4 3.07 
61-90 days past due15.1 149.4 118.5 283.0 53.0 336.0 1.93 
Greater than 90 days past due5.8 36.5 23.6 65.9 10.3 76.2 0.44 
Total past due53.0 457.2 305.0 815.2 131.4 946.6 5.44 
Total ending managed receivables$9,141.1 $6,123.5 $1,548.7 $16,813.3 $578.5 $17,391.8 100.00 
(1)     Percent of total ending managed receivables.
v3.24.1.1.u2
Fair Value Measurements (Tables)
 3 Months Ended
May 31, 2024
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 May 31, 2024
(In thousands)Level 1Level 2Total
Assets:   
Money market securities$836,465 $— $836,465 
Mutual fund investments25,175 — 25,175 
Derivative instruments designated as hedges— 51,354 51,354 
Derivative instruments not designated as hedges— 9,913 9,913 
Total assets at fair value$861,640 $61,267 $922,907 
Percent of total assets at fair value93.4  %6.6 %100.0 %
Percent of total assets3.2  %0.2 %3.4 %
Liabilities:   
Derivative instruments designated as hedges$— $(1,019)$(1,019)
Total liabilities at fair value$— $(1,019)$(1,019)
Percent of total liabilities—  %— %— %
 As of February 29, 2024
(In thousands)Level 1Level 2Total
Assets:   
Money market securities$1,164,270 $— $1,164,270 
Mutual fund investments24,312 — 24,312 
Derivative instruments designated as hedges— 45,761 45,761 
Derivative instruments not designated as hedges— 13,064 13,064 
Total assets at fair value$1,188,582 $58,825 $1,247,407 
Percent of total assets at fair value95.3  %4.7  %100.0  %
Percent of total assets4.4  %0.2  %4.6  %
Liabilities:   
Derivative instruments designated as hedges$— $(2,302)$(2,302)
Total liabilities at fair value$— $(2,302)$(2,302)
Percent of total liabilities—  %— %— %
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block]
(In thousands)As of May 31, 2024As of February 29, 2024
Carrying value$400,000 $400,000 
Fair value$380,320 $380,249 
v3.24.1.1.u2
Cancellation Reserves (Tables)
 3 Months Ended
May 31, 2024
Cancellation Reserves [Abstract]  
Schedule Of Cancellation Reserves Accrual
Cancellation Reserves
 Three Months Ended May 31
(In millions)20242023
Balance as of beginning of period$128.3 $139.2 
Cancellations(21.3)(24.6)
Provision for future cancellations24.3 24.1 
Balance as of end of period$131.3 $138.7 
v3.24.1.1.u2
Debt (Tables)
 3 Months Ended
May 31, 2024
Debt Disclosure [Abstract]  
Schedule Of Debt
(In thousands)As of May 31As of February 29
Debt Description (1)
Maturity Date20242024
Revolving credit facility (2)
June 2028$— $— 
Term loan (2)
June 2024— 300,000 
Term loan (2)
October 2026699,668 699,633 
4.17% Senior notesApril 2026200,000 200,000 
4.27% Senior notesApril 2028200,000 200,000 
Financing obligationsVarious dates through February 2059513,707 516,544 
Non-recourse notes payableVarious dates through December 203017,166,525 16,866,972 
Total debt18,779,900 18,783,149 
Less: current portion(535,944)(797,449)
Less: unamortized debt issuance costs(26,579)(26,044)
Long-term debt, net$18,217,377 $17,959,656 

(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:
August 2024 expiration$2.30 
December 2024 expiration0.70 
March 2025 expiration3.10 
Combined warehouse facility limit$6.10 
Unused capacity$1.92 
Non-recourse notes payable outstanding:
Warehouse facilities$4.18 
Asset-backed term funding transactions12.99 
Non-recourse notes payable$17.17 
v3.24.1.1.u2
Stock and Stock-Based Incentive Plans (Tables)
 3 Months Ended
May 31, 2024
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Schedule of Common Stock Repurchases
Common Stock Repurchases
 Three Months Ended
 May 31
 20242023
Number of shares repurchased (in thousands)
1,445.8 — 
Average cost per share$71.91 $— 
Available for repurchase, as of end of period (in millions)
$2,256.2 $2,451.3 
Composition of Share-Based Compensation Expense
Composition of Share-Based Compensation Expense
 Three Months Ended
 May 31
(In thousands)20242023
Cost of sales$1,009 $1,390 
CarMax Auto Finance income685 449 
Selling, general and administrative expenses47,101 35,304 
Share-based compensation expense, before income taxes$48,795 $37,143 
Composition Of Share-Based Compensation Expense - By Grant Type
Composition of Share-Based Compensation Expense – By Grant Type
 Three Months Ended
 May 31
(In thousands)20242023
Nonqualified stock options$18,944 $14,077 
Cash-settled restricted stock units (RSUs)11,390 15,111 
Stock-settled market stock units (MSUs)7,580 6,224 
Other share-based incentives:
Stock-settled performance stock units (PSUs)10,184 741 
Restricted stock (RSAs)— 231 
Employee stock purchase plan697 759 
Total other share-based incentives$10,881 $1,731 
Share-based compensation expense, before income taxes$48,795 $37,143 

Unrecognized Share-Based Compensation Expense – By Grant Type

 As of May 31, 2024
Weighted Average
UnrecognizedRemaining
CompensationRecognition Life
(Costs in millions)Costs(Years)
Nonqualified stock options$55.0 2.4
Stock-settled market stock units28.5 2.1
Other share-based incentives:
  Stock-settled performance stock units6.8 2.4
Total other share-based incentives6.8 2.4
Total$90.3 2.3
Share-based Payment Arrangement, Option, Activity [Table Text Block]
Stock Option Activity
   Weighted 
  WeightedAverage 
  AverageRemainingAggregate
 Number ofExerciseContractualIntrinsic
(Shares and intrinsic value in thousands)SharesPriceLife (Years)Value
Outstanding as of February 29, 20247,393 $82.03 
Options granted1,218 $67.21 
Options exercised(138)$59.39 
Options forfeited or expired(70)$83.25 
Outstanding as of May 31, 20248,403 $80.25 4.0$11,182 
Exercisable as of May 31, 20245,317 $82.02 2.8$7,295 
Outstanding Stock Options
Stock Option Information
Three Months Ended May 31
20242023
Options granted1,218,305 1,491,326 
Weighted average grant date fair value per share$29.18 $29.1 
Cash received from options exercised (in millions)
$8.2 $1.0 
Intrinsic value of options exercised (in millions)
$1.8 $0.2 
Realized tax benefits (in millions)
$0.4 $0.1 
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]
Assumptions Used to Estimate Option Values
 Three Months Ended May 31
 20242023
Dividend yield 0.0 % 0.0 %
Expected volatility factor (1)
39.6 %-46.1 %44.1 %-44.7 %
Weighted average expected volatility45.4 %44.6 %
Risk-free interest rate (2)
4.6 %-5.4 %3.6 %-5.2 %
Expected term (in years) (3)
 4.7 4.6

(1)Measured using historical daily price changes of our stock for a period corresponding to the term of the options and the implied volatility derived from the market prices of traded options on our stock.
(2)Based on the U.S. Treasury yield curve at the time of grant.
(3)Represents the estimated number of years that options will be outstanding prior to exercise.
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block]
Cash-Settled Restricted Stock Unit Activity
  Weighted
  Average
 Number ofGrant Date
(Units in thousands)UnitsFair Value
Outstanding as of February 29, 20241,297 $81.42 
Stock units granted915 $67.21 
Stock units vested and converted(538)$88.54 
Stock units cancelled(26)$76.27 
Outstanding as of May 31, 20241,648 $71.29 
Cash-Settled Restricted Stock Unit Information
Three Months Ended May 31
20242023
Stock units granted914,848 900,511 
Initial weighted average grant date fair value per share$67.21 $70.48 
Payments (before payroll tax withholdings) upon vesting (in millions)
$39.6 $36.3 
Realized tax benefits (in millions)
$9.8 $9.0 
Stock-Settled Market Stock Unit Activity
  Weighted
  Average
 Number ofGrant Date
(Units in thousands)UnitsFair Value
Outstanding as of February 29, 2024383 $123.73 
Stock units granted234 $95.65 
Stock units vested and converted(75)$176.46 
Stock units cancelled(10)$110.47 
Outstanding as of May 31, 2024532 $104.23 

Stock-Settled Market Stock Unit Information
Three Months Ended May 31
20242023
Stock units granted233,963 178,232 
Weighted average grant date fair value per share$95.65 $99.49 
Realized tax benefits (in millions)
$0.7 $2.1 
Expected Cash Settlement Range Upon Cash Settled Restricted Stock Unit Vesting
Expected Cash Settlement Range Upon Restricted Stock Unit Vesting
 As of May 31, 2024
(In thousands)
Minimum (1)
Maximum (1)
Fiscal 2026$37,620 $100,320 
Fiscal 202725,580 68,214 
Fiscal 202812,835 34,228 
Total expected cash settlements$76,035 $202,762 

(1)Net of estimated forfeitures.
v3.24.1.1.u2
Net Earnings Per Share (Tables)
 3 Months Ended
May 31, 2024
Earnings Per Share [Abstract]  
Basic And Dilutive Net Earnings Per Share Reconciliations
Basic and Dilutive Net Earnings Per Share Reconciliations
 Three Months Ended
 May 31
(In thousands except per share data)20242023
Net earnings$152,440 $228,298 
Weighted average common shares outstanding157,161 158,116 
Dilutive potential common shares:
Stock options282 164 
Stock-settled stock units and awards263 281 
Weighted average common shares and dilutive potential common shares157,706 158,561 
Basic net earnings per share$0.97 $1.44 
Diluted net earnings per share$0.97 $1.44 
v3.24.1.1.u2
Accumulated Other Comprehensive Income (Loss) (Tables)
 3 Months Ended
May 31, 2024
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]  
Changes In Accumulated Other Comprehensive Loss By Component
Changes in Accumulated Other Comprehensive Income By Component
   Total
 NetNetAccumulated
 UnrecognizedUnrecognizedOther
 ActuarialHedgeComprehensive
(In thousands, net of income taxes)LossesGainsIncome
Balance as of February 29, 2024$(37,116)$96,395 $59,279 
Other comprehensive income before reclassifications— 13,281 13,281 
Amounts reclassified from accumulated other comprehensive income84 (10,966)(10,882)
Other comprehensive income 84 2,315 2,399 
Balance as of May 31, 2024$(37,032)$98,710 $61,678 
Changes In And Reclassifications Out Of Accumulated Other Comprehensive Loss
Changes In and Reclassifications Out of Accumulated Other Comprehensive Income
 Three Months Ended May 31
(In thousands)20242023
Retirement Benefit Plans:
Actuarial loss amortization reclassifications recognized in net pension expense:
Cost of sales$50 $58 
CarMax Auto Finance income4 4 
Selling, general and administrative expenses57 67 
Total amortization reclassifications recognized in net pension expense111 129 
Tax expense(27)(31)
Amortization reclassifications recognized in net pension expense, net of tax84 98 
Net change in retirement benefit plan unrecognized actuarial losses, net of tax84 98 
Cash Flow Hedges (Note 5):  
Changes in fair value17,509 (36,007)
Tax (expense) benefit(4,228)8,871 
Changes in fair value, net of tax13,281 (27,136)
Reclassifications to CarMax Auto Finance income(14,498)(12,564)
Tax benefit3,532 3,063 
Reclassification of hedge gains, net of tax(10,966)(9,501)
Net change in cash flow hedge unrecognized gains, net of tax2,315 (36,637)
Total other comprehensive income (loss), net of tax$2,399 $(36,539)
v3.24.1.1.u2
Leases (Tables)
 3 Months Ended
May 31, 2024
Leases [Abstract]  
Lease, Cost [Table Text Block]
Three Months Ended May 31
(In thousands)20242023
Operating lease cost (1)
$23,228 $21,947 
Finance lease cost:
Depreciation of lease assets3,822 4,535 
Interest on lease liabilities6,671 6,095 
Total finance lease cost10,493 10,630 
Total lease cost$33,721 $32,577 

(1) Includes short-term leases and variable lease costs, which are immaterial.
Supplemental Balance Sheet Disclosures [Text Block]
As of May 31As of February 29
(In thousands)Classification20242024
Assets:
Operating lease assetsOperating lease assets$509,043 $520,717 
Finance lease assets
Property and equipment, net (1)
202,052 174,998 
Total lease assets$711,095 $695,715 
Liabilities:
Current:
Operating leasesCurrent portion of operating lease liabilities$57,534 $57,161 
Finance leasesAccrued expenses and other current liabilities21,102 20,877 
Long-term:
Operating leasesOperating lease liabilities, excluding current portion484,632 496,210 
Finance leasesOther liabilities227,528 198,759 
Total lease liabilities$790,796 $773,007 

(1)    Finance lease assets are recorded net of accumulated depreciation of $59.4 million as of May 31, 2024 and $55.5 million as of February 29, 2024.
Other Lease Disclosures [Table Text Block]
As of May 31As of February 29
Lease Term and Discount Rate20242024
Weighted Average Remaining Lease Term (in years)
Operating leases16.0416.07
Finance leases12.8911.43
Weighted Average Discount Rate
Operating leases5.08 %5.05 %
Finance leases15.66 %17.16 %
Three Months Ended May 31
(In thousands)20242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$22,760 $21,103 
Operating cash flows from finance leases$6,432 $5,912 
Financing cash flows from finance leases$4,548 $3,785 
Lease assets obtained in exchange for lease obligations:
Operating leases$2,780 $9,752 
Finance leases$33,315 $14,498 
Schedule Of Future Minimum Lease Obligations [Table Text Block]
As of May 31, 2024
(In thousands)
Operating Leases (1)
Finance Leases (1)
Fiscal 2025, remaining$62,791 $34,677 
Fiscal 202678,362 50,625 
Fiscal 202772,027 46,929 
Fiscal 202867,898 40,141 
Fiscal 202946,072 32,976 
Thereafter517,505 290,365 
Total lease payments844,655 495,713 
Less: interest(302,489)(247,083)
Present value of lease liabilities$542,166 $248,630 
(1)    Lease payments exclude $4.7 million of legally binding minimum lease payments for leases signed but not yet commenced.
v3.24.1.1.u2
Background (Narrative) (Details)
 3 Months Ended
May 31, 2024
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Reportable segments 2
v3.24.1.1.u2
Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended
May 31, 2024
May 31, 2023
Disaggregation of Revenue [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax $ 7,113.4 $ 7,687.1
Used vehicle sales    
Disaggregation of Revenue [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax 5,677.5 6,001.5
Wholesale vehicle sales    
Disaggregation of Revenue [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax 1,256.4 1,514.4
Extended protection plan revenues    
Disaggregation of Revenue [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax 118.8 111.2
Third-party finance (fees)/income, net    
Disaggregation of Revenue [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax (1.7) 0.3
Advertising & subscription revenues [Domain]    
Disaggregation of Revenue [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax 34.7 31.4
Service revenues    
Disaggregation of Revenue [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax 22.7 22.1
Other    
Disaggregation of Revenue [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax 5.0 6.2
Total other sales and revenues    
Disaggregation of Revenue [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax $ 179.5 $ 171.2
v3.24.1.1.u2
CarMax Auto Finance (Components Of CarMax Auto Finance Income) (Details) - USD ($)
$ in Thousands
 3 Months Ended
May 31, 2024
May 31, 2023
Auto Finance Income [Line Items]    
Interest and fee income $ 452,500 $ 400,500
Interest expense (182,300) (142,600)
Total interest margin 270,200 257,900
Provision for loan losses (81,200) (80,900)
Total interest margin after provision for loan losses 189,000 177,000
Payroll and fringe benefit expense (18,600) (16,600)
Other Depreciation and Amortization (4,200) (4,100)
Other direct expenses (19,200) (18,900)
Total direct expenses (42,000) (39,600)
CarMax Auto Finance income 146,970 137,358
Total average managed receivables $ 17,551,200 $ 17,003,400
Interest and fee income, percent    
Auto Finance Income [Line Items]    
Item as percent of total average managed receivables 10.30% 9.40%
Interest expense, percent    
Auto Finance Income [Line Items]    
Item as percent of total average managed receivables (4.20%) (3.40%)
Total interest margin, percent    
Auto Finance Income [Line Items]    
Item as percent of total average managed receivables 6.20% 6.10%
Provision for loan losses, percent    
Auto Finance Income [Line Items]    
Item as percent of total average managed receivables (1.90%) (1.90%)
Total interest margin after provision for loan losses, percent    
Auto Finance Income [Line Items]    
Item as percent of total average managed receivables 4.30% 4.20%
Payroll and fringe benefit expense, percent    
Auto Finance Income [Line Items]    
Item as percent of total average managed receivables (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%)
Other direct expenses, percent    
Auto Finance Income [Line Items]    
Item as percent of total average managed receivables (0.40%) (0.40%)
Total direct expenses, percent    
Auto Finance Income [Line Items]    
Item as percent of total average managed receivables (1.00%) (0.90%)
CarMax Auto Finance income, percent    
Auto Finance Income [Line Items]    
Item as percent of total average managed receivables 3.30% 3.20%
v3.24.1.1.u2
Auto Loan Receivables (Auto Loan Receivables, Net) (Details) - USD ($)
$ in Thousands
May 31, 2024
Feb. 29, 2024
May 31, 2023
Feb. 28, 2023
Non-recourse Notes Payable $ 17,166,525 $ 16,866,972    
Financing Receivable, before Allowance for Credit Loss 17,641,600 17,391,800    
Interest Receivable 100,300 90,900    
Other 19,500 11,900    
Financing Receivable, Allowance for Credit Loss 493,064 482,790 $ 535,400 $ 507,200
Financing Receivable, after Allowance for Credit Loss 17,268,321 17,011,844    
Asset-backed term funding        
Financing Receivable, before Allowance for Credit Loss 12,475,500 12,638,200    
Warehouse facilities        
Financing Receivable, before Allowance for Credit Loss 4,176,600 3,744,600    
Overcollateralization        
Financing Receivable, before Allowance for Credit Loss 813,200 790,900    
Other managed receivables        
Financing Receivable, before Allowance for Credit Loss $ 176,300 $ 218,100    
v3.24.1.1.u2
Auto Loan Receivables (Ending Managed Receivables By Major Credit Grade) (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
May 31, 2024
May 31, 2023
Feb. 29, 2024
Financing Receivable, By Major Credit Grade [Line Items]      
Financing Receivable, Originated in Current Fiscal Year $ 2,174.8   $ 6,936.6
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year 6,303.6   5,074.3
Financing Receivable, Originated Two Years before Latest Fiscal Year 4,581.6   3,333.9
Financing Receivable, Originated Three Years before Latest Fiscal Year 2,943.9   1,308.8
Financing Receivable, Originated Four Years before Latest Fiscal Year 1,105.2   600.8
Financing Receivable, Originated Five or More Years before Latest Fiscal Year 532.5   137.4
Financing Receivable, before Allowance for Credit Loss $ 17,641.6   $ 17,391.8
Total ending managed receivables as percentage by major credit grade 100.00%   100.00%
Financing Receivable, Allowance for Credit Loss, Writeoff $ 133.1 $ 109.8 $ 561.5
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff 50.8   129.8
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff 40.1   248.6
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff 27.4   41.0
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff 8.1   19.7
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff 6.3   11.4
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff 0.4   111.0
Core managed receivables      
Financing Receivable, By Major Credit Grade [Line Items]      
Financing Receivable, Originated in Current Fiscal Year 2,043.2   6,637.6
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year 6,025.5   4,898.0
Financing Receivable, Originated Two Years before Latest Fiscal Year 4,421.9   3,261.3
Financing Receivable, Originated Three Years before Latest Fiscal Year 2,878.6   1,299.5
Financing Receivable, Originated Four Years before Latest Fiscal Year 1,097.0   588.7
Financing Receivable, Originated Five or More Years before Latest Fiscal Year 516.0   128.2
Financing Receivable, before Allowance for Credit Loss $ 16,982.2   $ 16,813.3
Total ending managed receivables as percentage by major credit grade 96.30%   96.70%
Financing Receivable, Allowance for Credit Loss, Writeoff $ 113.0 93.1  
Other managed receivables      
Financing Receivable, By Major Credit Grade [Line Items]      
Financing Receivable, Allowance for Credit Loss, Writeoff 20.1 $ 16.7  
Credit Grade A | Core managed receivables      
Financing Receivable, By Major Credit Grade [Line Items]      
Financing Receivable, Originated in Current Fiscal Year 1,298.6   $ 3,922.7
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year 3,535.2   2,660.6
Financing Receivable, Originated Two Years before Latest Fiscal Year 2,388.4   1,635.1
Financing Receivable, Originated Three Years before Latest Fiscal Year 1,428.4   614.0
Financing Receivable, Originated Four Years before Latest Fiscal Year 507.2   268.7
Financing Receivable, Originated Five or More Years before Latest Fiscal Year 212.1   40.0
Financing Receivable, before Allowance for Credit Loss $ 9,369.9   $ 9,141.1
Total ending managed receivables as percentage by major credit grade 53.10%   52.60%
Credit Grade B | Core managed receivables      
Financing Receivable, By Major Credit Grade [Line Items]      
Financing Receivable, Originated in Current Fiscal Year $ 650.6   $ 2,370.8
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year 2,172.1   1,738.8
Financing Receivable, Originated Two Years before Latest Fiscal Year 1,582.3   1,225.9
Financing Receivable, Originated Three Years before Latest Fiscal Year 1,092.5   493.3
Financing Receivable, Originated Four Years before Latest Fiscal Year 423.8   233.4
Financing Receivable, Originated Five or More Years before Latest Fiscal Year 217.2   61.3
Financing Receivable, before Allowance for Credit Loss $ 6,138.5   $ 6,123.5
Total ending managed receivables as percentage by major credit grade 34.80%   35.20%
Credit Grade C And Other | Core managed receivables      
Financing Receivable, By Major Credit Grade [Line Items]      
Financing Receivable, Originated in Current Fiscal Year $ 94.0   $ 344.1
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year 318.2   498.6
Financing Receivable, Originated Two Years before Latest Fiscal Year 451.2   400.3
Financing Receivable, Originated Three Years before Latest Fiscal Year 357.7   192.2
Financing Receivable, Originated Four Years before Latest Fiscal Year 166.0   86.6
Financing Receivable, Originated Five or More Years before Latest Fiscal Year 86.7   26.9
Financing Receivable, before Allowance for Credit Loss $ 1,473.8   $ 1,548.7
Total ending managed receivables as percentage by major credit grade 8.40%   8.90%
Credit Grade C And Other | Other managed receivables      
Financing Receivable, By Major Credit Grade [Line Items]      
Financing Receivable, Originated in Current Fiscal Year $ 131.6   $ 299.0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year 278.1   176.3
Financing Receivable, Originated Two Years before Latest Fiscal Year 159.7   72.6
Financing Receivable, Originated Three Years before Latest Fiscal Year 65.3   9.3
Financing Receivable, Originated Four Years before Latest Fiscal Year 8.2   12.1
Financing Receivable, Originated Five or More Years before Latest Fiscal Year 16.5   9.2
Financing Receivable, before Allowance for Credit Loss $ 659.4   $ 578.5
Total ending managed receivables as percentage by major credit grade 3.70%   3.30%
v3.24.1.1.u2
Auto Loan Receivables (Allowance for Loan Losses) (Details) - USD ($)
 3 Months Ended 12 Months Ended
May 31, 2024
May 31, 2023
Feb. 29, 2024
Feb. 28, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]        
Financing Receivable, Allowance for Credit Loss $ 493,064,000 $ 535,400,000 $ 482,790,000 $ 507,200,000
Financing Receivable, Allowance for Credit Loss, Writeoff (133,100,000) (109,800,000) $ (561,500,000)  
Financing Receivable, Allowance for Credit Loss, Recovery 62,200,000 57,100,000    
Provision for loan losses 81,200,000 $ 80,900,000    
Item As Percent Of Total Ending Managed Receivables, Period Increase (Decrease) $ 1      
Allowance For Loan Losses, percent        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Item as percent of total ending managed receivables 2.79% 3.11% 2.78% 3.02%
Core managed receivables        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Financing Receivable, Allowance for Credit Loss $ 396,600,000 $ 427,500,000 $ 389,700,000 $ 401,500,000
Financing Receivable, Allowance for Credit Loss, Writeoff (113,000,000.0) (93,100,000)    
Financing Receivable, Allowance for Credit Loss, Recovery 53,900,000 50,500,000    
Provision for loan losses 66,000,000.0 68,600,000    
Other managed receivables        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Financing Receivable, Allowance for Credit Loss 96,500,000 107,900,000 $ 93,100,000 $ 105,700,000
Financing Receivable, Allowance for Credit Loss, Writeoff (20,100,000) (16,700,000)    
Financing Receivable, Allowance for Credit Loss, Recovery 8,300,000 6,600,000    
Provision for loan losses $ 15,200,000 $ 12,300,000    
v3.24.1.1.u2
Auto Loan Receivables (Past Due Receivables) (Details) - USD ($)
$ in Millions
May 31, 2024
Feb. 29, 2024
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Current $ 16,692.6 $ 16,445.2
Past due receivables as a percentage of total ending managed receivables 5.38% 5.44%
Financing Receivable, before Allowance for Credit Loss, Noncurrent $ 949.0 $ 946.6
Financing Receivable, before Allowance for Credit Loss $ 17,641.6 $ 17,391.8
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 94.62% 94.56%
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 3.04% 3.07%
Financing Receivable, before Allowance for Credit Loss, Noncurrent $ 536.9 $ 534.4
Sixty One To Ninety Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past due receivables as a percentage of total ending managed receivables 1.93% 1.93%
Financing Receivable, before Allowance for Credit Loss, Noncurrent $ 339.5 $ 336.0
Greater Than Ninety Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past due receivables as a percentage of total ending managed receivables 0.41% 0.44%
Financing Receivable, before Allowance for Credit Loss, Noncurrent $ 72.6 $ 76.2
Core managed receivables    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Current 16,169.9 15,998.1
Financing Receivable, before Allowance for Credit Loss, Noncurrent 812.3 815.2
Financing Receivable, before Allowance for Credit Loss 16,982.2 16,813.3
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 465.6 466.3
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 284.6 283.0
Core managed receivables | Greater Than Ninety Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Noncurrent 62.1 65.9
Core managed receivables | Credit Grade A    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Current 9,316.9 9,088.1
Financing Receivable, before Allowance for Credit Loss, Noncurrent 53.0 53.0
Financing Receivable, before Allowance for Credit Loss 9,369.9 9,141.1
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 33.9 32.1
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 14.1 15.1
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 5.0 5.8
Core managed receivables | Credit Grade B    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Current 5,672.3 5,666.3
Financing Receivable, before Allowance for Credit Loss, Noncurrent 466.2 457.2
Financing Receivable, before Allowance for Credit Loss 6,138.5 6,123.5
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 272.2 271.3
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 157.7 149.4
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 36.3 36.5
Core managed receivables | Credit Grade C And Other    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Current 1,180.7 1,243.7
Financing Receivable, before Allowance for Credit Loss, Noncurrent 293.1 305.0
Financing Receivable, before Allowance for Credit Loss 1,473.8 1,548.7
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 159.5 162.9
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 112.8 118.5
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 20.8 23.6
Other managed receivables | Credit Grade C And Other    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss, Current 522.7 447.1
Financing Receivable, before Allowance for Credit Loss, Noncurrent 136.7 131.4
Financing Receivable, before Allowance for Credit Loss 659.4 578.5
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 71.3 68.1
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 54.9 53.0
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 $ 10.5 $ 10.3
v3.24.1.1.u2
Derivative Instruments And Hedging Activities (Narrative) (Details) - Interest Rate Swaps - Cash Flow Hedging - USD ($)
$ in Millions
 3 Months Ended
May 31, 2024
Feb. 29, 2024
Designated As Hedging Instrument    
Derivative [Line Items]    
Additional reclassification from AOCL to CAF income within the next 12 months $ 51.7  
Derivative, Notional Amount 4,990.0 $ 5,210.0
Not Designated as Hedging Instrument [Member]    
Derivative [Line Items]    
Derivative, Gain (Loss) on Derivative, Net (3.2)  
Derivative, Notional Amount $ 529.0 $ 704.0
v3.24.1.1.u2
Fair Value Measurements (Schedule Of Items Measured At Fair Value On A Recurring Basis) (Details) - USD ($)
$ in Thousands
May 31, 2024
Feb. 29, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Money market securities $ 836,465 $ 1,164,270
Mutual fund investments 25,175 24,312
Total assets at fair value $ 922,907 $ 1,247,407
Percent of total assets at fair value 100.00% 100.00%
Percent of total assets 3.40% 4.60%
Total liabilities at fair value $ (1,019) $ (2,302)
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 $ 836,465 $ 1,164,270
Mutual fund investments 25,175 24,312
Total assets at fair value $ 861,640 $ 1,188,582
Percent of total assets at fair value 93.40% 95.30%
Percent of total assets 3.20% 4.40%
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 $ 61,267 $ 58,825
Percent of total assets at fair value 6.60% 4.70%
Percent of total assets 0.20% 0.20%
Total liabilities at fair value $ (1,019) $ (2,302)
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 $ 51,354 $ 45,761
Liabilities: Derivative instruments (1,019) (2,302)
Designated As Hedging Instrument | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Asset 0 0
Liabilities: Derivative instruments 0 0
Designated As Hedging Instrument | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Asset 51,354 45,761
Liabilities: Derivative instruments (1,019) (2,302)
Not Designated as Hedging Instrument [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Asset 9,913 13,064
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 $ 9,913 $ 13,064
v3.24.1.1.u2
Fair Value Measurements Fair Value Measurements (Schedule of Carrying Values and Estimated Fair Values of Debt Instruments) (Details) - USD ($)
$ in Thousands
May 31, 2024
Feb. 29, 2024
Fair Value Disclosures [Abstract]    
Senior Notes $ 400,000 $ 400,000
Debt Instrument, Fair Value Disclosure $ 380,320 $ 380,249
v3.24.1.1.u2
Cancellation Reserves (Narrative) (Details) - USD ($)
$ in Millions
May 31, 2024
Feb. 29, 2024
Cancellation Reserves [Abstract]    
Cancellation reserves, current portion $ 70.9 $ 69.7
v3.24.1.1.u2
Cancellation Reserves (Schedule Of Cancellation Reserves Accrual) (Details) - USD ($)
$ in Millions
 3 Months Ended
May 31, 2024
May 31, 2023
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]    
Balance as of beginning of period $ 128.3 $ 139.2
Cancellations (21.3) (24.6)
Provision for future cancellations 24.3 24.1
Balance as of end of period $ 131.3 $ 138.7
v3.24.1.1.u2
Income Taxes (Narrative) (Details) - USD ($)
$ in Millions
May 31, 2024
Feb. 29, 2024
Federal Income Tax Note    
Unrecognized tax benefits, gross $ 30.0 $ 28.8
Decrease in Unrecognized Tax Benefits is Reasonably Possible $ 14.0  
v3.24.1.1.u2
Debt (Schedule Of Debt) (Details) - USD ($)
$ in Thousands
May 31, 2024
Feb. 29, 2024
Debt Instrument [Line Items]    
Long-term Debt $ 18,217,377 $ 17,959,656
Financing Obligations 513,707 516,544
Non-recourse Notes Payable 17,166,525 16,866,972
Total debt 18,779,900 18,783,149
Less: current portion (535,944) (797,449)
Unamortized Debt Issuance Expense (26,579) (26,044)
Revolving Credit Facility [Member]    
Debt Instrument [Line Items]    
Long-term Debt 0 0
Term Loan [Member]    
Debt Instrument [Line Items]    
Long-term Debt 0 300,000
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 $ 699,668 $ 699,633
v3.24.1.1.u2
Debt (Schedule of Funding Vehicles) (Details) - USD ($)
$ in Thousands
May 31, 2024
Feb. 29, 2024
Debt Instrument [Line Items]    
Non-recourse Notes Payable $ 17,166,525 $ 16,866,972
Warehouse Facility Three    
Debt Instrument [Line Items]    
Warehouse Facilities Maximum Borrowing Capacity 3,100,000  
Warehouse Facility Two    
Debt Instrument [Line Items]    
Warehouse Facilities Maximum Borrowing Capacity 700,000  
Warehouse Facility One    
Debt Instrument [Line Items]    
Warehouse Facilities Maximum Borrowing Capacity 2,300,000  
Warehouse Facilities [Member]    
Debt Instrument [Line Items]    
Warehouse Facilities Maximum Borrowing Capacity 6,100,000  
Debt Instrument, Unused Borrowing Capacity, Amount 1,920,000  
Non-recourse Notes Payable 4,180,000  
Term Securitizations Debt [Member]    
Debt Instrument [Line Items]    
Non-recourse Notes Payable $ 12,990,000  
v3.24.1.1.u2
Debt (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended
May 31, 2024
May 31, 2023
Jun. 26, 2024
Feb. 29, 2024
Debt Instrument [Line Items]        
Outstanding Balance $ 18,217,377     $ 17,959,656
Capitalized interest 1,500 $ 1,400    
Credit Facility        
Debt Instrument [Line Items]        
Maximum borrowing capacity 2,000,000      
Unused capacity 2,000,000      
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 6.33%      
Asset-Backed Securities        
Debt Instrument [Line Items]        
Asset-Backed Securities, at Carrying Value     $ 625,000  
v3.24.1.1.u2
Stock and Stock-Based Incentive Plans (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
May 31, 2024
Feb. 29, 2024
May 31, 2023
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 $ 2,256.2   $ 2,451.3
Equity Option [Member]      
Stock and Stock-Based Incentive Plans      
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period 7 years    
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period 4 years    
Cash-settled restricted stock units (RSUs)      
Stock and Stock-Based Incentive Plans      
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number 1,648,000 1,297,000  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value $ 71.29 $ 81.42  
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period 3 years    
Cash-settled restricted stock units (RSUs) | Minimum      
Stock and Stock-Based Incentive Plans      
cash payment per cash settled restricted stock unit 75.00%    
Cash-settled restricted stock units (RSUs) | Maximum      
Stock and Stock-Based Incentive Plans      
cash payment per cash settled restricted stock unit 200.00%    
Stock-settled market stock units (MSUs)      
Stock and Stock-Based Incentive Plans      
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number 532,000 383,000  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value $ 104.23 $ 123.73  
Market Stock Units Converted To Common Stock Conversion Ratio Number Of Final Trading Days In Vesting Period 40 days    
Share-based Compensation Arrangement by Share-based Payment Award, Conversion Ratio Quotient 2    
Stock-settled market stock units (MSUs) | Minimum      
Stock and Stock-Based Incentive Plans      
stock units converted to common stock for each unit granted 0    
Stock-settled market stock units (MSUs) | Maximum      
Stock and Stock-Based Incentive Plans      
stock units converted to common stock for each unit granted 2    
Performance Shares [Member]      
Stock and Stock-Based Incentive Plans      
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number 296,997    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value $ 71.11    
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period 3 years    
Performance Shares [Member] | Minimum      
Stock and Stock-Based Incentive Plans      
stock units converted to common stock for each unit granted 0    
Performance Shares [Member] | Maximum      
Stock and Stock-Based Incentive Plans      
stock units converted to common stock for each unit granted 2    
PSU conversion threshold 200.00%    
Deferred Stock Units [Member]      
Stock and Stock-Based Incentive Plans      
stock units converted to common stock for each unit granted 1    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number 97,001    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value $ 89.80    
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period 1 year    
Restricted Stock [Member] | Minimum      
Stock and Stock-Based Incentive Plans      
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period 1 year    
Restricted Stock [Member] | Maximum      
Stock and Stock-Based Incentive Plans      
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period 3 years    
PSU Grants - Performance Target Not Set [Member] | Performance Shares [Member]      
Stock and Stock-Based Incentive Plans      
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number 23,551    
Fiscal 2022 grants - Year 1 | Performance Shares [Member]      
Stock and Stock-Based Incentive Plans      
PSU conversion threshold 200.00%    
Fiscal 2023 grants - Year 1 [Member] | Performance Shares [Member]      
Stock and Stock-Based Incentive Plans      
PSU conversion threshold 4.00%    
Fiscal 2023 grants - Year 1 [Member] | Performance Shares [Member] | Minimum      
Stock and Stock-Based Incentive Plans      
PSU conversion threshold 25.00%    
Fiscal 2022 grants - Year 2 | Performance Shares [Member]      
Stock and Stock-Based Incentive Plans      
PSU conversion threshold 4.00%    
Fiscal 2022 - Year 3 grants | Performance Shares [Member]      
Stock and Stock-Based Incentive Plans      
PSU conversion threshold 38.00%    
Fiscal 2024 grants - Year 1 [Member] | Performance Shares [Member]      
Stock and Stock-Based Incentive Plans      
PSU conversion threshold 38.00%    
Fiscal 2024 grants - Year 1 [Member] | Performance Shares [Member] | Minimum      
Stock and Stock-Based Incentive Plans      
PSU conversion threshold 25.00%    
Fiscal 2023 grants - Year 2 | Performance Shares [Member]      
Stock and Stock-Based Incentive Plans      
PSU conversion threshold 38.00%    
Fiscal 2023 grants - Year 2 | Performance Shares [Member] | Minimum      
Stock and Stock-Based Incentive Plans      
PSU conversion threshold 25.00%    
Fiscal 2022 grants | Performance Shares [Member] | Minimum      
Stock and Stock-Based Incentive Plans      
PSU conversion threshold 25.00%    
Fiscal 2023 grants - Year 3 | Performance Shares [Member] | Minimum      
Stock and Stock-Based Incentive Plans      
PSU conversion threshold 50.00%    
Fiscal 2024 grants - Year 2 | Performance Shares [Member] | Minimum      
Stock and Stock-Based Incentive Plans      
PSU conversion threshold 50.00%    
Fiscal 2025 grants | Performance Shares [Member] | Minimum      
Stock and Stock-Based Incentive Plans      
PSU conversion threshold 50.00%    
v3.24.1.1.u2
Stock and Stock-Based Incentive Plans (Schedule of Common Stock Repurchases) (Details) - Share Repurchase Program - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
May 31, 2024
May 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of shares repurchased 1,445,800 0
Average Cost Per Share $ 71.91 $ 0
Available for repurchase, as of end of period $ 2,256.2 $ 2,451.3
v3.24.1.1.u2
Stock and Stock-Based Incentive Plans (Composition of Share-Based Compensation Expense) (Details) - USD ($)
$ in Thousands
 3 Months Ended
May 31, 2024
May 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Share-based compensation expense, before income taxes $ 48,795 $ 37,143
Cost of sales    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Share-based compensation expense, before income taxes 1,009 1,390
Carmax Auto Finance Income    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Share-based compensation expense, before income taxes 685 449
Selling, general and administrative expenses    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Share-based compensation expense, before income taxes $ 47,101 $ 35,304
v3.24.1.1.u2
Stock and Stock-Based Incentive Plans (Composition of Share-Based Compensation Expense - By Grant Type) (Details) - USD ($)
$ in Thousands
 3 Months Ended
May 31, 2024
May 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based compensation expense, before income taxes $ 48,795 $ 37,143
Stock options    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based compensation expense, before income taxes 18,944 14,077
Cash-settled restricted stock units (RSUs)    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based compensation expense, before income taxes 11,390 15,111
Stock-settled market stock units (MSUs)    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based compensation expense, before income taxes 7,580 6,224
Stock-settled performance stock units (PSUs)    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based compensation expense, before income taxes 10,184 741
Restricted Stock [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based compensation expense, before income taxes 0 231
Employee stock purchase plan    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based compensation expense, before income taxes 697 759
Other share-based incentives    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based compensation expense, before income taxes $ 10,881 $ 1,731
v3.24.1.1.u2
Stock and Stock-Based Incentive Plans (Unrecognized Compensation Expense) (Details)
$ in Millions
 3 Months Ended
May 31, 2024
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount $ 90.3
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition 2 years 3 months 18 days
Equity Option [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount $ 55.0
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition 2 years 4 months 24 days
Stock-settled market stock units (MSUs)  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount $ 28.5
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition 2 years 1 month 6 days
Performance Shares [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount $ 6.8
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition 2 years 4 months 24 days
Other share-based incentives  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount $ 6.8
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition 2 years 4 months 24 days
v3.24.1.1.u2
Stock and Stock-Based Incentive Plans (Stock Option Activity) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
May 31, 2024
May 31, 2023
Feb. 29, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number 8,403,000   7,393,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures 1,218,000    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (138,000)    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period (70,000)    
Equity Option [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price $ 80.25   $ 82.03
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures 1,218,305 1,491,326  
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price $ 67.21    
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price 59.39    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price $ 83.25    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term 4 years    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value $ 11,182    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number 5,317,000    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price $ 82.02    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term 2 years 9 months 18 days    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value $ 7,295    
v3.24.1.1.u2
Stock and Stock-Based Incentive Plans (Settled) (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
May 31, 2024
May 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures 1,218,000  
Equity Option [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures 1,218,305 1,491,326
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value $ 29.18 $ 29.1
Proceeds from Stock Options Exercised $ 8.2 $ 1.0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value 1.8 0.2
Share-based Payment Arrangement, Tax Benefit $ 0.4 $ 0.1
v3.24.1.1.u2
Stock and Stock-Based Incentive Plans (Assumptions Used to Estimate Option Value) (Details)
 3 Months Ended
May 31, 2024
May 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate 0.00% 0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum 39.60% 44.10%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum 46.10% 44.70%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate 45.40% 44.60%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum 4.60% 3.60%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum 5.40% 5.20%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term 4 years 8 months 12 days 4 years 7 months 6 days
v3.24.1.1.u2
Stock and Stock-Based Incentive Plans (Cash-Settled Restricted Stock Unit Activity) (Details) - Cash-settled restricted stock units (RSUs) - $ / shares
 3 Months Ended
May 31, 2024
May 31, 2023
Feb. 29, 2024
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 1,648,000   1,297,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value $ 71.29   $ 81.42
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period 914,848 900,511  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value $ 67.21 $ 70.48  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (538,000)    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value $ 88.54    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period (26,000)    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value $ 76.27    
v3.24.1.1.u2
Stock and Stock-Based Incentive Plans (Cash-Settled Restricted Stock Unit Information) (Details) - Cash-settled restricted stock units (RSUs) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
May 31, 2024
May 31, 2023
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, Grants in Period 914,848 900,511
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value $ 67.21 $ 70.48
Share-based Compensation Arrangement by Share-based Payment Award, Payments Upon Vesting $ 39.6 $ 36.3
Share-based Payment Arrangement, Tax Benefit $ 9.8 $ 9.0
v3.24.1.1.u2
Stock and Stock-Based Incentive Plans (Expected Cash Settlement Range Upon Restricted Stock Unit Vesting) (Details)
$ in Thousands
May 31, 2024
USD ($)
Minimum  
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, Expected Cash Payouts Upon Vesting In Two Years $ 25,580
Share Based Compensation Arrangement By Share Based Payment Award, Equity Instruments Other Than Options, Expected Cash Payouts Upon Vesting In Three Years 12,835
Share Based Compensation Arrangement By Share Based Payment Award, Equity Instruments Other Than Options, Expected Cash Payouts Upon Vesting 76,035
Share Based Compensation Arrangement By Share Based Payment Award, Equity Instruments Other Than Options, Expected Cash Payouts Upon Vesting In Next Fiscal Year 37,620
Maximum  
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, Expected Cash Payouts Upon Vesting In Two Years 68,214
Share Based Compensation Arrangement By Share Based Payment Award, Equity Instruments Other Than Options, Expected Cash Payouts Upon Vesting In Three Years 34,228
Share Based Compensation Arrangement By Share Based Payment Award, Equity Instruments Other Than Options, Expected Cash Payouts Upon Vesting 202,762
Share Based Compensation Arrangement By Share Based Payment Award, Equity Instruments Other Than Options, Expected Cash Payouts Upon Vesting In Next Fiscal Year $ 100,320
v3.24.1.1.u2
Stock and Stock-Based Incentive Plans (Stock-Settled Activity) (Details) - Stock-settled market stock units (MSUs) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
May 31, 2024
May 31, 2023
Feb. 29, 2024
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 532,000   383,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value $ 104.23   $ 123.73
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period 233,963 178,232  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value $ 95.65 $ 99.49  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (75,000)    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value $ 176.46    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period (10,000)    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value $ 110.47    
Share-based Payment Arrangement, Tax Benefit $ 0.7 $ 2.1  
v3.24.1.1.u2
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
May 31, 2024
May 31, 2023
Schedule of Basic and Dilutive Net Earnings Per Share Reconciliation [Line Items]    
Net earnings $ 152,440 $ 228,298
Weighted average common shares outstanding, shares 157,161 158,116
Weighted average common shares and dilutive potential common shares, shares 157,706 158,561
Basic net earnings per share (in dollars per share) $ 0.97 $ 1.44
Diluted net earnings per share (in dollars per share) $ 0.97 $ 1.44
Stock options    
Schedule of Basic and Dilutive Net Earnings Per Share Reconciliation [Line Items]    
Dilutive potential common shares, shares 282 164
Stock-settled stock units and awards    
Schedule of Basic and Dilutive Net Earnings Per Share Reconciliation [Line Items]    
Dilutive potential common shares, shares 263 281
v3.24.1.1.u2
Net Earnings Per Share (Narrative) (Details) - shares
 3 Months Ended
May 31, 2024
May 31, 2023
Earnings Per Share [Abstract]    
Anti-dilutive securities not included in calculation of diluted net earnings per share 4,796,089 5,425,830
v3.24.1.1.u2
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
 3 Months Ended
May 31, 2024
May 31, 2023
Schedule of Accumulated Other Comprehensive Loss [Line Items]    
Beginning balance $ 59,279  
Other comprehensive income before reclassifications 13,281  
Amounts reclassified from accumulated other comprehensive income (10,882)  
Other comprehensive income (loss), net of taxes 2,399 $ (36,539)
Ending balance 61,678  
Net Unrecognized Actuarial Losses    
Schedule of Accumulated Other Comprehensive Loss [Line Items]    
Beginning balance (37,116)  
Other comprehensive income before reclassifications 0  
Amounts reclassified from accumulated other comprehensive income 84  
Other comprehensive income (loss), net of taxes 84  
Ending balance (37,032)  
Net Unrecognized Hedge Gains (Losses)    
Schedule of Accumulated Other Comprehensive Loss [Line Items]    
Beginning balance 96,395  
Other comprehensive income before reclassifications 13,281  
Amounts reclassified from accumulated other comprehensive income (10,966)  
Other comprehensive income (loss), net of taxes 2,315  
Ending balance $ 98,710  
v3.24.1.1.u2
Accumulated Other Comprehensive Income (Loss) (Changes In and Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($)
$ in Thousands
 3 Months Ended
May 31, 2024
May 31, 2023
Total amortization reclassifications recognized in net pension expense $ 111 $ 129
Tax expense (27) (31)
Amortization reclassifications recognized in net pension expense, net of tax 84 98
Net change in retirement benefit plan unrecognized actuarial losses, net of tax 84 98
Changes in fair value 17,509 (36,007)
Tax (expense) benefit (4,228) 8,871
Changes in fair value, net of tax 13,281 (27,136)
Reclassifications to CarMax Auto Finance income (14,498) (12,564)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax 3,532 3,063
Reclassification of hedge gains, net of tax (10,966) (9,501)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax 2,315 (36,637)
Total other comprehensive income (loss), net of tax 2,399 (36,539)
Cost of sales    
Total amortization reclassifications recognized in net pension expense 50 58
CarMax Auto Finance income    
Total amortization reclassifications recognized in net pension expense 4 4
Selling, general and administrative expenses    
Total amortization reclassifications recognized in net pension expense $ 57 $ 67
v3.24.1.1.u2
Accumulated Other Comprehensive Income (Loss) (Narrative) (Details) - USD ($)
$ in Millions
May 31, 2024
Feb. 29, 2024
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]    
Deferred tax $ 20.0 $ 19.3
v3.24.1.1.u2
Leases Narrative (Details)
 3 Months Ended
May 31, 2024
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
v3.24.1.1.u2
Leases Components of Lease Cost (Details) - USD ($)
$ in Thousands
 3 Months Ended
May 31, 2024
May 31, 2023
Leases [Abstract]    
Operating Lease, Cost $ 23,228 $ 21,947
Finance Lease, Right-of-Use Asset, Amortization 3,822 4,535
Finance Lease, Interest Expense 6,671 6,095
Finance Lease, Cost 10,493 10,630
Lease, Cost $ 33,721 $ 32,577
v3.24.1.1.u2
Leases - Supplemental Balance Sheet (Details) - USD ($)
$ in Thousands
May 31, 2024
Feb. 29, 2024
Leases [Abstract]    
Operating lease assets $ 509,043 $ 520,717
Finance Lease, Right-of-Use Asset 202,052 174,998
Total lease assets 711,095 695,715
Current portion of operating lease liabilities 57,534 57,161
Finance Lease, Liability, Current 21,102 20,877
Operating lease liabilities, excluding current portion 484,632 496,210
Finance Lease, Liability, Noncurrent 227,528 198,759
Total lease liabilities 790,796 773,007
Finance Lease Accumulated Depreciation $ 59,400 $ 55,500
v3.24.1.1.u2
Lease Term and Discount Rate (Details)
May 31, 2024
Rate
Feb. 29, 2024
Rate
Leases [Abstract]    
Operating Lease, Weighted Average Remaining Lease Term 16 years 14 days 16 years 25 days
Finance Lease, Weighted Average Remaining Lease Term 12 years 10 months 20 days 11 years 5 months 4 days
Operating Lease, Weighted Average Discount Rate, Percent 5.08% 5.05%
Finance Lease, Weighted Average Discount Rate, Percent 15.66% 17.16%
v3.24.1.1.u2
Lease Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
May 31, 2024
May 31, 2023
Leases [Abstract]    
Operating Lease, Payments $ 22,760 $ 21,103
Finance Lease, Interest Payment on Liability 6,432 5,912
Finance Lease, Principal Payments 4,548 3,785
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability 2,780 9,752
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability $ 33,315 $ 14,498
v3.24.1.1.u2
Leases Maturities of Lease Liabilities (Details)
$ in Thousands
May 31, 2024
USD ($)
Leases [Abstract]  
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year $ 62,791
Lessee, Operating Lease, Liability, Payments, Due Year Two 78,362
Lessee, Operating Lease, Liability, Payments, Due Year Three 72,027
Lessee, Operating Lease, Liability, Payments, Due Year Four 67,898
Lessee, Operating Lease, Liability, Payments, Due Year Five 46,072
Lessee, Operating Lease, Liability, Payments, Due after Year Five 517,505
Lessee, Operating Lease, Liability, Payments, Due 844,655
Lessee, Operating Lease, Liability, Undiscounted Excess Amount (302,489)
Operating Lease, Liability 542,166
Finance Lease, Liability, Payments, Remainder of Fiscal Year 34,677
Finance Lease, Liability, Payments, Due Year Two 50,625
Finance Lease, Liability, Payments, Due Year Three 46,929
Finance Lease, Liability, Payments, Due Year Four 40,141
Finance Lease, Liability, Payments, Due Year Five 32,976
Finance Lease, Liability, Payments, Due after Year Five 290,365
Finance Lease, Liability, Payment, Due 495,713
Finance Lease, Liability, Undiscounted Excess Amount (247,083)
Finance Lease, Liability 248,630
lessee, minimum lease payments for leases not yet commenced $ 4,700
v3.24.1.1.u2
Contingent Liabilities (Details) - USD ($)
$ in Millions
May 31, 2024
Feb. 29, 2024
Commitments and Contingencies Disclosure [Abstract]    
Liability associated with guarantee $ 30.5 $ 30.9