Stock And Stock-Based Incentive Plans (Tables)
3 Months Ended
May 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Composition Of Share-Based Compensation Expense

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

May 31

(In thousands)

 

2014

2013

Cost of sales

 

$

327 

 

$

1,273 

 

CarMax Auto Finance income

 

 

676 

 

 

782 

 

Selling, general and administrative expenses

 

 

14,716 

 

 

21,174 

 

Share-based compensation expense, before income taxes

 

$

15,719 

 

$

23,229 

 

 

Composition Of Share-Based Compensation Expense - By Grant Type

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

May 31

(In thousands)

 

2014

2013

Nonqualified stock options

 

$

8,120 

 

$

7,033 

 

Cash-settled restricted stock units

 

 

3,147 

 

 

12,088 

 

Stock-settled restricted stock units

 

 

4,121 

 

 

3,820 

 

Employee stock purchase plan

 

 

331 

 

 

288 

 

Stock grants to non-employee directors

 

 

 ―

 

 

 ―

 

Share-based compensation expense, before income taxes

 

$

15,719 

 

$

23,229 

 

 

Stock Option Activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

Weighted

 

Remaining

 

Aggregate

 

Number of

Average

 

Contractual

 

Intrinsic

(Shares and intrinsic value in thousands)

Shares

Exercise Price

 

Life (Years)

 

Value

Outstanding as of February 28, 2014

 

10,018 

 

$

27.02 

 

 

 

 

 

 

 

 

 

Options granted

 

2,003 

 

 

44.96 

 

 

 

 

 

 

 

 

 

Options exercised

 

(374)

 

 

18.11 

 

 

 

 

 

 

 

 

 

Options forfeited or expired

 

(12)

 

 

23.64 

 

 

 

 

 

 

 

 

 

Outstanding as of May 31, 2014

 

11,635 

 

$

30.40 

 

 

 

4.1 

 

 

$

163,230 

 

Exercisable as of May 31, 2014

 

7,129 

 

$

24.01 

 

 

 

2.9 

 

 

$

144,745 

 

 

Outstanding Stock Options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of May 31, 2014

 

 

 

 

 

 

Options Outstanding

 

Options Exercisable

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

Weighted

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

Remaining

Average

 

 

 

 

Average

(Shares in thousands)

Number of

Contractual

Exercise

 

Number of

Exercise

Range of Exercise Prices

Shares

Life (Years)

Price

 

Shares

Price

$

11.43 

 

 

 

 

 

1,468 

 

 

1.8 

 

$

11.43 

 

 

 

1,468 

 

$

11.43 

 

$

13.19 

-

$

19.82

 

 

1,341 

 

 

0.8 

 

$

15.89 

 

 

 

1,341 

 

$

15.89 

 

$

19.98 

-

$

25.39

 

 

1,498 

 

 

2.9 

 

$

25.20 

 

 

 

1,498 

 

$

25.20 

 

$

25.67 

-

$

32.69

 

 

3,717 

 

 

4.3 

 

$

32.13 

 

 

 

2,379 

 

$

32.22 

 

$

33.11 

-

$

49.25

 

 

3,611 

 

 

6.4 

 

$

43.88 

 

 

 

443 

 

$

42.09 

 

Total

 

 

 

 

 

 

11,635 

 

 

4.1 

 

$

30.40 

 

 

 

7,129 

 

$

24.01 

 

 

Assumptions Used To Estimate Option Values

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended May 31

 

 

2014

 

2013

Dividend yield

 

 

 

 

0.0 

%

 

 

 

 

0.0 

%

Expected volatility factor (1)  

 

25.2 

%

-

32.7 

%

 

28.1 

%

-

46.8 

%

Weighted average expected volatility

 

 

 

 

31.9 

%

 

 

 

 

44.8 

%

Risk-free interest rate (2)     

 

0.03 

%

-

2.7 

%

 

0.04 

%

-

1.7 

%

Expected term (in years) (3)  

 

 

 

 

4.7 

 

 

 

 

 

4.7 

 

 

(1)Measured using historical daily price changes of our stock for a period corresponding to the term of the options and the implied volatility derived from the market prices of traded options on our stock.

(2)Based on the U.S. Treasury yield curve in effect at the time of grant.

(3)Represents the estimated number of years that options will be outstanding prior to exercise.

Cash-Settled For Restricted Stock Unit [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Restricted Stock And Restricted Stock Unit Activity

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

Average

 

 

Number of

Grant Date

(Units in thousands)

 

Units

Fair Value

Outstanding as of February 28, 2014

 

1,531 

 

$

35.68 

 

Stock units granted

 

587 

 

$

44.96 

 

Stock units vested and converted

 

(458)

 

$

32.71 

 

Stock units cancelled

 

(29)

 

$

37.81 

 

Outstanding as of May 31, 2014

 

1,631 

 

$

39.82 

 

 

Expected Cash Settlement Range Upon Restricted Stock Unit Vesting

 

 

 

 

 

 

 

 

 

 

As of May 31, 2014

(In thousands)

 

Minimum (1)

Maximum (1)

Fiscal 2016

 

$

12,460 

 

$

33,226 

 

Fiscal 2017

 

 

14,144 

 

 

37,716 

 

Fiscal 2018

 

 

16,321 

 

 

43,523 

 

Total expected cash settlements

 

$

42,925 

 

$

114,465 

 

 

(1)Net of estimated forfeitures.

 

Stock-Settled Restricted Stock Units [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Restricted Stock And Restricted Stock Unit Activity

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

Average

 

 

Number of

Grant Date

(Units in thousands)

 

Units

Fair Value

Outstanding as of February 28, 2014

 

852 

 

$

45.26 

 

Stock units granted

 

245 

 

$

55.37 

 

Stock units vested and converted

 

(281)

 

$

45.57 

 

Stock units cancelled

 

 ―

 

$

 ―

 

Outstanding as of May 31, 2014

 

816 

 

$

48.19