CarMax 2008 Annual Report Download - page 26

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14
Specifically, we have enhanced our ability to identify profitable markets and determine the appropriate store formats
to fit those markets.
We plan to open superstores at an annual rate of approximately 15% of our used car superstore base. In fiscal 2009,
we plan to open approximately 14 superstores, including 7 production superstores and 7 non-production superstores,
expanding our store base by 16%. Our fiscal 2009 expansion plans are largely focused on opening production
superstores in new mid-sized markets and non-production superstores in existing markets. We generally define mid-
sized markets as those with television viewing populations of between 600,000 and 2.5 million people. Historically,
mid-sized markets have been the easiest to enter from a real estate and an advertising/awareness building
perspective and they are where we have generally experienced the fastest ramp-up in store sales and profitability.
We also have resumed store growth in new large markets.
For additional details on fiscal 2009 planned store openings, see “Operations Outlook,” included in Part II, Item 7,
of this Form 10-K.
Item 3. Legal Proceedings.
On June 12, 2007, Ms. Regina Hankins filed a putative class action lawsuit against CarMax, Inc., in Baltimore
County Circuit Court, Maryland. We operate five stores in the state of Maryland. The plaintiff alleges that, since
May 25, 2004, CarMax has not properly disclosed its vehicles’ prior rental history, if any. The plaintiff seeks
compensatory damages, punitive damages, injunctive relief and the recovery of attorneys’ fees. At this time, we
continue to evaluate the allegations and our defenses. We are unable to make a reasonable estimate of the amount or
range of loss that could result from an unfavorable outcome in this matter.
We are involved in various other legal proceedings in the normal course of business. Based upon our evaluation of
information currently available, we believe that the ultimate resolution of any such proceedings will not have a
material adverse effect, either individually or in the aggregate, on our financial condition or results of operations.
Item 4. Submission of Matters to a Vote of Security Holders.
No matters were submitted to a vote of security holders during the fourth quarter of fiscal 2008.