CarMax 2008 Annual Report Download - page 69

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We granted 914,505 shares of restricted stock to our employees in fiscal 2008 and 984,500 shares in fiscal 2007.
The fair value of a restricted stock award is determined and fixed based on the price of our stock on the grant date.
The unrecognized compensation costs related to nonvested restricted stock awards totaled $19.1 million as of
February 29, 2008. These costs are expected to be recognized over a weighted average period of 1.6 years.
(D) Employee Stock Purchase Plan
We sponsor an employee stock purchase plan for all associates meeting certain eligibility criteria. Associate
contributions are limited to 10% of eligible compensation, up to a maximum of $7,500 per year. For each $1.00
contributed by associates to the plan, we match $0.15. We have authorized up to 4,000,000 shares of common stock
for the employee stock purchase plan. The source of the shares available for purchase by associates may, at our
option, be open market purchases or authorized but unissued shares.
As of February 29, 2008, a total of 1,858,139 shares remained available under the plan. Shares purchased on the
open market on behalf of associates were 409,004 during fiscal 2008; 337,311 during fiscal 2007; and 427,318
during fiscal 2006. The average price per share purchased under the plan was $22.24 in fiscal 2008, $19.32 in fiscal
2007 and $14.42 in fiscal 2006. The total cost for matching contributions was $1.2 million in fiscal 2008, $0.9
million in fiscal 2007 and $0.8 million in fiscal 2006. These costs are included in share-based compensation costs.
11. NET EARNINGS PER SHARE
BASIC AND DILUTIVE NET EARNINGS PER SHARE RECONCILIATIONS
Years Ended February 29 or 28
(In thousands except per share data) 2008 2007 2006
Net earnings available to common shareholders .............................. $ 182,025 $ 198,597 $ 134,220
Weighted average common shares outstanding........................ 216,045 212,454 209,270
Dilutive potential common shares:
Stock options......................................................................... 3,918 4,111 3,555
Restricted stock..................................................................... 559 174 21
Weighted average common shares and dilutive potential
common shares ...................................................................... 220,522 216,739 212,846
Basic net earnings per share ...................................................... $ 0.84 $ 0.93 $ 0.64
Diluted net earnings per share ................................................... $ 0.83 $ 0.92 $ 0.63
Certain options were outstanding and not included in the calculation of diluted net earnings per share because their
inclusion would be antidilutive. As of February 29, 2008, options to purchase 1,893,803 shares of common stock
with exercise prices ranging from $17.20 to $25.79 per share were outstanding and not included in the calculation.
As of February 28, 2007, options to purchase 9,000 shares of common stock with an exercise price of $22.29 per
share were outstanding and not included in the calculation. As of February 28, 2006, options to purchase 8,923,968
shares with exercise prices ranging from $13.19 to $21.72 per share were outstanding and not included in the
calculation.
12. ACCUMULATED OTHER COMPREHENSIVE LOSS
Years Ended February 29 or 28
(In thousands, net of income taxes)
Unrecognized
Actuarial Losses
(Gains)
Unrecognized
Prior Service Cost
Total
Accumulated
Other
Comprehensive
Loss
Balance as of February 28, 2006 ............................ $
— $ — $ —
Adoption of SFAS 158........................................... 20,094 238 20,332
Balance as of February 28, 2007 ............................ 20,094 238 20,332
Amounts arising during the year ............................ (2,177) 662 (1,515)
Amortization recognized in net pension expense ... (1,991) (98) (2,089)
Balance as of February 29, 2008 ............................ $ 15,926 $ 802 $ 16,728